Exchange Whale Ratio Suggests Bitcoin Dump Incoming
On-chain data shows Bitcoin exchange whale ratio has started rising, suggesting that a dump of the crypto may be coming soon.
Bitcoin Whales Now Account For 90% Of Inflow To Exchanges
As pointed out by a CryptoQuant post, the exchange whale ratio has risen above 0.9, implying that dumping may be going on in the market.
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 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 Bitcoininflow amount. Such values have been historically healthy for the market.
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.
Investors usually move their Bitcoin to exchanges for selling purposes. So, this trend may show that whales are currently dumping as they are moving vast amounts of coins to exchanges.
Bitcoin looked to have finally broken out of consolidation some days back, but the crypto has now once again fallen back down into the $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