Bitcoin’s latest recovery rally has now slowed as on-chain data shows signs of whale selling.
Bitcoin Exchange Whale Ratio Continues at High
As one analyst in CryptoQuant pointed out postalBTC whales are currently sending their tokens to exchanges.
This”swap whale ratio” is a measure of the ratio of the sum of the top 10 exchanges to the total inflow to Bitcoin exchanges.
In a nutshell, this metric tells us how whale trades (ie the top 10 trades) compare to the total amount coming into the exchange.
If the value of this ratio is high, it means that whale A significant portion of the inflow is currently being made up. This trend could be a sign that these whales are selling, and thus could be bearish for the cryptocurrency’s price.
On the other hand, a low value for this indicator means that whales are making up a healthy part of the current inflow. This trend could prove either neutral or bullish for the value of BTC.
Now, here is a chart showing the trend of the whale ratio on Bitcoin exchanges over the past few months:
The 72-hour MA value of the metric seems to have been high recently | Source: CryptoQuant
As you can see in the graph above, the Bitcoin exchange whale ratio has remained fairly high in recent days.
Generally speaking, the value of this indicator remains below 0.85 during bull markets and higher during bear markets.
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The current value of the ratio is above 0.90, which means that more than 90% of foreign exchange inflows come from the current top 10 trades. This could suggest that whales are currently dumping.
After hitting lows below $18,000, Bitcoin has attempted to resume its rally over the past few days, but the run has slowed as the coin’s value now appears to be trading sideways.
The move was halted likely because the exchange-whale ratio was signaling the sell-off of whales.
As of this writing, price of bitcoin Floating around $20.7k, down 2% over the past 7 days. The cryptocurrency has lost 31% in value over the past month.
The chart below shows the trend of the coin’s price over the past five days.
Looks like the value of the crypto has been consolidating sideways over the past few days | Source: BTCUSD on TradingView
Featured image from Fábio Hanashiro on Unsplash.com, charts from TradingView.com, CryptoQuant.com