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Data shows Bitcoin whales now account for 91% of deposits destined for exchanges, a trend that could be a bearish signal.
Bitcoin exchange whale ratio soars to 91%
As a CryptoQuant article pointed out, the whale ratio of all BTC exchanges has now risen to 91%, a historically bad sign for crypto.
The “whale exchange ratio” is a Bitcoin indicator that is defined as the total amount in BTC of the top 10 transactions divided by the total number of coins entering the exchanges.
Simply put, the metric tells us how the top ten transactions going to exchanges compare to total deposits.
If the value of this ratio is high, it means that whale Bitcoin transactions represent a large portion of all deposits during the specific time period. Such a situation can be bearish for the coin.
Whereas if the value of the indicator is low, it implies that few whales are currently selling on the exchanges. This trend may be bullish for crypto.
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Now here’s a graph that shows how the Bitcoin whale ratio has changed recently:
Looks like the indicator value has increased over the last day | Source: CryptoQuant
As the chart above shows, the Bitcoin whale ratio appears to have increased earlier today, as whale transactions now occupy 91% of total foreign exchange deposits.
Usually, values above 85% are considered to be signs of dumping. When the price of BTC slumped over $ 66,000 about a week ago, the ratio topped 90% just before that.
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Since the indicator has now reached values as high as it was then, the whales could again pour out. If the trend continues, it could deal another blow to an already declining Bitcoin market.
BTC price
As of this writing, the price of Bitcoin is floating around $ 56.2,000, down 5% over the past seven days. Over the past thirty days, the crypto has lost 7% in value.
The chart below shows the coin’s price trend over the past five days.
The price of BTC seems to fall again | Source: BTCUSD on TradingView
Since Bitcoin began to fall after hitting a new all-time high of around $ 69,000, the crypto has shown no signs of recovering. Over the past week, BTC has mainly consolidated between prices of $ 60,000 and $ 55,000.
If the whale swap ratio is anything, the coin may be even lower from here. However, not all signs are negative. According to the Puell Multiple, it appears that miners don’t feel enough pressure to sell at this level, a bullish indicator.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Sources 2/ https://bitcoinist.com/bitcoin-bearish-signal-whales-now-make-up-for-91-of-exchange-deposits/ The mention sources can contact us to remove/changing this article |
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