On-chain data shows whales have started selling

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Data on the channel shows the whale ratio has passed the 0.50 mark, a historic sign that whales are dumping in the near term.

Bitcoin whales have started selling their coins

As a CryptoQuant article pointed out, the Bitcoin whale ratio started to break above the 0.50 level. This signal has generally signified a bearish outlook for the crypto in the short term.

The ratio of BTC whales to all exchanges is an indicator that gives an estimate of the number of whales that send their coins to the exchanges.

The metric does this by taking the sum of the top 10 transactions on each exchange and dividing it by the total of the inflows on all exchanges.

ExchangeWhaleRatio = Sum of top 10 exchange entry TX (BTC) TotalExchangeInflowsinBTC

Another indicator is ‘flow in’, it gives the total amount of Bitcoin entering exchange wallets from personal wallets.

When the whale ratio rises, it means that the top 10 trades to the exchanges are absorbing more of the total BTC entering those exchanges.

This means that more and more whales have started sending their coins to exchanges, either to withdraw into fiat or stable coins or to buy altcoins.

On the other hand, when the value drops, it means that small general transactions make up the majority of inbound flows to exchanges, and Bitcoin whales are not moving their coins just yet.

Related reading | Could a Bitcoin Bull Flag Leave Bears Blind

Here is a graph showing the evolution of the value of the indicator over the past year:

Bitcoin whale ratio has started to climb again | Source: CryptoQuant

As the graph above shows, the whale ratio has climbed several times over the past year, and each time it has, a collapse in the price of the coin has also followed shortly thereafter. .

Related reading | JPMorgan analysts say a lot of money is throwing Bitcoin for Ethereum

Looks like the whale ratio has started to rise again as its value now exceeds 0.50. This could indicate that BTC could go down then in the short term at least.

BTC price

As of this writing, the price of Bitcoin is floating around $ 42,000, down 3% over the past seven days. Over the past month, the crypto has lost 13% in value.

The chart below shows the coin’s price trend over the past five days:

BTC Price Seems To Have Collapsed Again | Source: BTCUSD on TradingView

After showing some recovery from the crash due to the announcement of China’s ban, Bitcoin slumped again to $ 42,000 after rising nearly $ 44.5,000.

If the whale ratio is something to follow, the price could continue to decline in the short term. Maintaining above $ 40,000 is going to be crucial for any big step forward.

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