The latest recovery rally in bitcoin price has now slowed as on-chain data shows signs of dumping from whales.
Bitcoin Exchange Whale Ratio Continues to High Prices
As one analyst in a Cryptoquant post pointed out, BTC whales are currently sending their coins to exchanges.
The “Exchange Whale Ratio” is an indicator that measures the ratio between the sum of the top ten transactions for an exchange and the total bitcoin exchange flow.
Simply put, this metric tells us how whale transactions (that is, the ten largest transfers) compare with the total amount going to exchanges.
If the value of this ratio is high, it means that whales are currently replenishing a large part of the influx. Such a trend could be a sign of dumping from these whales, and thus bearish for the price of the crypto.
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On the other hand, a low value of the indicator means that whales are currently making up a healthy portion of the inflow. This trend could prove to be neutral or bullish for the value of BTC.
Now, here is a chart that shows the trend in bitcoin exchange whale ratio 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 above graph, the bitcoin exchange whale ratio has been holding pretty high values in recent days.
Generally, the value of the indicator stays below 0.85 during a bull market, while it remains at higher values than during a bear market period.
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The current value of the ratio is above 0.90, which means that over 90% of the exchange flows are from the ten largest transactions right now. This could be a sign that the whales are dumping at the moment.
Bitcoin attempted a recovery rally after hitting lows below $18k over the past few days, but the run has slowed as the coin’s value is now moving sideways.
This interruption in move could possibly be due to sell off whales that the exchange whale ratio is indicating right now.
btc price
At the time of writing, the price of bitcoin is down 2% over the past seven days, around $20.7k. In the past month, crypto has lost 31% in value.
The chart below shows the coin’s price trend 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
