On-chain data shows the Bitcoin exchange whale ratio spiked up just before the crypto\u2019s plunge below the $19k level.<\/p>\n
Bitcoin Exchange Whale Ratio Breached 90% Right Before The Price Dip<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the whale activity on exchanges has been raised recently.<\/p>\n The \u201cexchange whale ratio<\/a>\u201d is an indicator that measures the ratio between the top ten inflow transactions to exchanges and the total exchange inflows.<\/p>\n The ten biggest transfers are assumed to be from the whales<\/a>, so that the metric tells us what part of the total number of coins moving into exchanges is coming from these humungous holders.<\/p>\n When the value of this indicator is high, it means a large part of the inflows is coming from whales right now. Such a trend can be a sign of dumping from this cohort and can therefore be bearish for the price.<\/p>\n On the other hand, low values of the ratio can suggest whales are making up a healthy part of the transactions to exchanges at the moment. This kind of trend can either be bullish or neutral for the crypto\u2019s value.<\/p>\n Historically, the metric has usually had values above 0.85 during bear markets or fake bulls, while it has generally remained below this threshold during bull runs.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the last couple of months:<\/p>\n The value of the metric seems to have been elevated recently | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin exchange whale ratio surged up yesterday and hit a value of 0.9, implying that whales contributed 90% of the inflows to exchanges.<\/p>\n This spike in the indicator came not too long before the plummet in the price of the coin below $19k, suggesting that dumping from whales may have been behind the drop.<\/p>\n The ratio has also remained elevated since then, which could mean the cohort is continuing to deposit to exchanges, something that could prove to bearish for BTC.<\/p>\n BTC Price<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $19.3k, down 4% in the last seven days. Over the past month, the crypto has lost 17% in value.<\/p>\n The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n Looks like the value of the crypto has rebounded back a little to above $19k again since the plunge yesterday | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows the Bitcoin exchange whale ratio spiked up just before the crypto\u2019s plunge below the $19k level.<\/p>\n Bitcoin Exchange Whale Ratio Breached 90% Right Before The Price Dip<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the whale activity on exchanges has been raised recently.<\/p>\n The \u201cexchange whale ratio<\/a>\u201d is an indicator that measures the ratio between the top ten inflow transactions to exchanges and the total exchange inflows.<\/p>\n The ten biggest transfers are assumed to be from the whales<\/a>, so that the metric tells us what part of the total number of coins moving into exchanges is coming from these humungous holders.<\/p>\n When the value of this indicator is high, it means a large part of the inflows is coming from whales right now. Such a trend can be a sign of dumping from this cohort and can therefore be bearish for the price.<\/p>\n On the other hand, low values of the ratio can suggest whales are making up a healthy part of the transactions to exchanges at the moment. This kind of trend can either be bullish or neutral for the crypto\u2019s value.<\/p>\n Historically, the metric has usually had values above 0.85 during bear markets or fake bulls, while it has generally remained below this threshold during bull runs.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the last couple of months:<\/p>\n The value of the metric seems to have been elevated recently | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin exchange whale ratio surged up yesterday and hit a value of 0.9, implying that whales contributed 90% of the inflows to exchanges.<\/p>\n This spike in the indicator came not too long before the plummet in the price of the coin below $19k, suggesting that dumping from whales may have been behind the drop.<\/p>\n The ratio has also remained elevated since then, which could mean the cohort is continuing to deposit to exchanges, something that could prove to bearish for BTC.<\/p>\n BTC Price<\/p>\n
\nFeatured image from Karl-Heinz M\u00fcller on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"