According to data from the Bitcoin Exchange Whale ratio, it has risen in recent times. This is a sign that there could be dumping taking place on the market.
Bitcoin Exchange Whale Ratio Rises As Prices Drop
In a CryptoQuant article, an analyst noted that BTC’s exchange whale ratio recently reached very high levels.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top 10 transactions to exchanges and the total amount of Bitcoin moving into exchanges.
This metric, which is simpler than it sounds, tells us how much of total foreign exchange inflows are made up by the 10 largest transactions.
These transactions are usually carried out by whales. If the indicator’s value rises, it is a sign that whales send large sums to the exchanges. This means they make up a larger percentage of total inflows.
A trend like this can be bearish on Bitcoin’s value as it could indicate whale dumping.
However, the decrease in the ratio means that the market has a more balanced balance. Whales, for example, control less of the transactions.
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Below is a chart that illustrates the Bitcoin exchange whale rate over the past 12 months:
It looks like the indicator's value has risen recently. Source: CryptoQuant| Source: CryptoQuant
The above graph shows that the Bitcoin whale ratio rose to high levels over the last few days.
These values now are close to what was seen in January early, just after which the market crashed. This trend has been marked by the quant.
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The exchange whale ratio at these prices suggests that a similar trend might follow. The outlook for Bitcoin prices in such an environment is bearish.
BTC price
At the time of writing, Bitcoin’s price floats around $42.2k, down 1% in the last seven days. The crypto’s value has fallen 1% over the last month.
The chart below shows how Bitcoin’s prices have changed over the course of the last five business days.
BTC appears to have fallen in value over the last few trading days. Source: BTCUSD TradingView| Source: BTCUSD on TradingView
A few days ago, Bitcoin’s price had climbed up beyond the $45k mark, but the recovery didn’t last too long. In the past few days, Bitcoin’s price has fallen to $42k.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts