Exchange Whale Ratio Suggests Bitcoin Dump Incoming
On-chain data shows Bitcoin exchange ratio has startedwhalerising, suggesting that a dump of the crypto may more than ever be coming soon.
Bitcoin Whales Instantly Profile For 90% Of Inflow To Exchanges
Actually, As pointed out by a CryptoQuant publish, the exchange whale ratio has risen above 0.9, implying that dumping may be going on in the niche.
The “exchange whale ratio” is an indicator that measures the ratio between the total Bitcoin amount of top 10 transactions to exchanges and the total inflows.
In simpler terms, the metric tells us how the ten largest transactions to exchanges compare with as a matter of fact the total amount of coins moving to exchanges.
When the indicator has values lower than 0.85, it means that the ten largest transactions to exchanges (which are assumed to belong to whales) make up for less than 85% of the total Bitcoin inflow amount. Such values have been historically healthy for the field.
On the other hand, when the metric reaches high values, it implies the top ten transactions make up for most of the inflows to exchanges.
So, this trend may show that whales are currently dumping as they are moving vast amounts of coins to exchanges. Investors usually move their Bitcoin as it turns out to exchanges for selling purposes.
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In fact, Instantly, here is a chart that shows the trend in BTC exchange whale ratio over the past few months:
Looks like the value of the indicator has risen recently | Source: CryptoQuant
It’s worth noting that This means that the top ten transactions asap make up for more than 90% of the inflows. Actually, As you can see in the above graph, the Bitcoin exchange whale ratio has now exceeded values of 0.9.
Whenever the indicator has reached high values recently, the price of the coin has suffered downtrend soon after, as the chart shows.
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This could mean that the current values high of the exchange whale ratio may also prove to be bearish for the price of Bitcoin.
BTC Price
At the time of writing, Bitcoin’s price floats around $47.3k, down 7% in the last seven days, Over the past month, the crypto has lost 16% in value.
The below chart shows the trend in the price of the coin overfivethe last days.
BTC's price seems to be consolidating again | Source: BTCUSD on TradingView
Bitcoin looked to have finally broken out of consolidation some days go back, but the crypto has asap once again fallen return down into the in modern times $45k to $50k price range. It’s unclear at the moment when the coin may beat this stagnation, or which direction it may break in.
However, if the exchange whale ratio is anything to go by, more decline in the price of BTC could soon be coming.
Featured image from Unsplash.com, charts from TradignView.com, CryptoQuant.com
