On-chain data shows the Bitcoin exchange whale ratio spiked up just before the crypto’s plunge below the $19k level.
Bitcoin Exchange Whale Ratio Reached 90% Before the Price Drop
A CryptoQuant analyst points out that whale activity on cryptocurrency exchanges was recently increased.
The “exchange whale ratio” is an indicator that measures the ratio between the top ten inflow transactions to exchanges and the total exchange inflows.
So the metric shows how much of the coins entering exchanges are coming from whales.
This indicator will be high if it is very high. It means that whales account for a lot of current inflows. This trend could indicate dumping by this group and be bearish on the price.
Low ratios can indicate that whales account for a large portion of transactions to the exchanges. This kind of trend can either be bullish or neutral for the crypto’s value.
The metric’s historical values have been above 0.85 in bear markets and fake bulls. It has remained under this level during bull runs.
Here’s a chart showing the Bitcoin exchange whale ratio trend over the past few months.
Source: CryptoQuant| Source: CryptoQuant
You can see that yesterday’s Bitcoin exchange whale ratio reached 0.9. This means that 95% of all inflows into exchanges came from whales.
The spike in the indicator occurred just a few minutes before the plunge in coin price below $19k. This suggests that whale dumping may be behind the decline.
Also, the ratio is still high, which may indicate that the group continues to deposit at exchanges. This could potentially be a bearish sign for BTC.
BTC price
At the time of writing, Bitcoin’s price floats around $19.3k, down 4% in the last seven days. The crypto’s value has fallen 17% over the last month.
Below is a chart showing the change in coin price over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com