The Bitcoin Whale ratio is on the rise as the leverage in Bitcoin has not fallen to an all-time high.
Both Bitcoin Whale and Leverage Ratios are available at ATHs right now
A CryptoQuant analyst points out that BTC-investors are currently involved in high-risk trading on the futures markets.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten inflows to exchanges, and the total exchange inflows.
The metric assumes that the whales make the largest transactions to exchanges. This tells us whether the whales are actively trading on the market.
The ratio that is higher indicates whales have a significant contribution to exchange inflows.
Here’s a chart showing the Bitcoin whale trend over the past few years.
Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Quant from the Post has indicated the periods in which the Bitcoin exchange whale rate was trending.
It appears that the price takes a huge hit when the indicator hits a high but then begins to decline.
From the chart, it’s apparent that the metric has risen up during recent months, and is now floating around all-time high values.
The data for the “estimated leverage ratio” is also displayed. This indicator indicates how leveraged the average trader is on futures markets.
Bitcoin’s leverage ratio is on the rise and has reached a new ATH. This suggests that Bitcoin investors may be taking a high level of risk right now.
Historical data shows that BTC prices have been volatile because of high market leverage. These conditions could lead to crypto becoming bearish quickly if the whale ratio begins declining and the current trend continues.
BTC price
At the time of writing, Bitcoin’s price floats around $19.5k, up 2% in the last seven days. The crypto’s value has increased by 1% over the last month.
The chart below shows how the currency’s price has changed over the course of five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Peg Lemkuil's featured image on Unsplash.com. Charts by TradingView.com. CryptoQuant.com.