Exchange Whale Ratio indicates that Bitcoin dump is coming

On-chain data shows that the whale ratio of Bitcoin exchanges has begun to rise, which indicates that a dump of cryptocurrencies may be coming.

Bitcoin whales now account for 90% of exchange inflows

As CryptoQuant pointed out postal, The exchange whale ratio has risen above 0.9, suggesting that dumping may be taking place in the market.

This”Exchange whale ratio“It is an indicator that measures the ratio between the total amount of bitcoin in the first 10 transactions on the exchange and the total inflow.

In simple terms, this indicator tells us how the top ten transactions on the exchange compare to the total amount of coins transferred to the exchange.

When the value of this indicator is lower than 0.85, it means that the top 10 transactions (assuming whales) on the exchange account for less than 85% of the total Bitcoin Inflow quantity. These values ​​have always been healthy for the market.

On the other hand, when the indicator reaches a high value, it means that the first ten trades make up most of the funds flowing into the exchange.

Investors usually transfer their bitcoins to exchanges for sale. Therefore, this trend may indicate that whales are currently dumping because they are transferring large amounts of coins to exchanges.

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Now, here is a chart showing the trend of the BTC exchange whale ratio in the past few months:

Looks like the value of the indicator has risen recently | Source: CryptoQuant

As you can see in the graph above, the Bitcoin exchange whale ratio has now exceeded the value of 0.9. This means that the top ten transactions now account for more than 90% of inflows.

Whenever the indicator has recently reached a high value, the price of the coin will soon fall, as shown in the figure.

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This may mean that the current high value of the exchange’s whale ratio may also prove to be detrimental to the price of Bitcoin.

Bitcoin price

At the time of writing, Bitcoin price Floating around US$47,300, it has fallen by 7% in the past 7 days, and the value of cryptocurrencies has fallen by 16% in the past month.

The chart below shows the trend of token prices in the past five days.

Bitcoin price chart

BTC's price seems to be consolidating again | Source: BTCUSD on TradingView

A few days ago, Bitcoin seemed to finally get rid of the integration, but the cryptocurrency has now fallen again into the $45,000 to $50,000 price range. It is not clear when the token can break through this stagnation, or in which direction it might break through.

However, if the exchange whale ratio is acceptable, then the price of BTC may soon see more drops.

Featured image from Unsplash.com, charts from TradignView.com, CryptoQuant.com

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