On-chain data shows that the Bitcoin whale has recently declined with the cryptocurrency rising above the $24,000 mark.
Bitcoin exchange whale ratio (EMA 7) is currently below 0.50
According to a post from CryptoQuantRecently, the BTC exchange whale has declined while the price has gone up.
The “whale exchange ratio“It is an indicator that measures the ratio between the sum of the 10 largest bitcoin transactions on exchanges and the total exchange inflows.
Whale Exchange Ratio = Sum of the 10 largest txs exchanged (in BTC) ÷ Total exchange flows (in BTC)
Here, the top ten translocations are considered because they generally belong to whales. Thus, when the ratio value is high, it means that whales are compensating for a large part of the total flows at the moment.
Since investors usually send BTC to exchanges for selling purposes, this trend could be a sign that whales are also dumping at the moment. Thus it could be bearish relative to the price of the cryptocurrency.
On the other hand, low scale values could indicate that whales are currently occupying a normal amount of total inflows. This trend can be neutral or bullish for the value of the currency.
Now, here is a graph showing the trend in the 7-day exponential moving bitcoin exchange whale ratio over the past month:
The EMA-7 value of the metric looks to have been down in recent days | Source: CryptoQuant
As you can see in the chart above, the Bitcoin exchange whale ratio (EMA-7) has been below 0.50 for seven of the past eight days.
The 0.50 mark is the dumping limit for the EMA-7 version of the scale, and since the index has been below this value recently, selling pressure from whales has been low.
While the ratio declined, BTC price enjoyed some bullish momentum as the coin surged above the $24,000 mark earlier today.
At the time of writing this report, Bitcoin price It is floating around $23.5K, down 1% in the past seven days. Over the past month, the cryptocurrency has gained 15% in value.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has observed some upwards movement during the last couple of days | Source: BTCUSD on TradingView
About ten days ago, Bitcoin recovered above 23 thousand dollars, but only a few days later the price of the cryptocurrency began to fall again. However, in the past couple of days, the coin has enjoyed some sharp bullish momentum as it regained $23,000.
Earlier today, BTC topped $24,000, although it wasn’t long before the cryptocurrency experienced a recession and plummeted to its current level.
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com