Bitcoin’s recent recovery rally has now slowed as on-chain data shows signs of dumping whales.
Bitcoin exchange whale continues to be at high values
As pointed out by an analyst at CryptoQuant MailCurrently, BTC whales are sending their coins to exchanges.
The “whale exchange ratio“It is an indicator that measures the ratio between the sum of the ten largest exchange transactions and the total bitcoin exchange flows.
In simpler terms, this metric tells us how whale transactions (i.e. the top ten transfers) compare to the total amount traded on the exchanges.
If the value of this ratio is high, it means whales It makes up for a large part of the inflows at the moment. This trend could be a sign of these whales being dumped, and thus could be bearish for the cryptocurrency price.
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On the other hand, low index values indicate that whales are currently a healthy part of inflows. This trend can be neutral or bullish for the value of BTC.
Now, here is a graph showing the trend in the bitcoin exchange whale percentage over the past few months:
The 72-hour MA value of the metric seems to have been high recently | Source: CryptoQuant
As you can see in the above chart, the bitcoin exchange whale ratio has remained at very high values in recent days.
In general, the value of the index remains below 0.85 during bull markets, while it remains at values \u200b\u200bhigher than those in bear market periods.
The present value of the ratio is above 0.90, which means that more than 90% of the exchange flow comes from the top ten transactions at the moment. This may be a hint that the whales are currently drowning.
Bitcoin has been trying to recover over the past few days after hitting as low as $18K, but it has now slowed as the value of the coin now appears to be moving sideways.
This halt in movement may be due to the whale sale that the whale exchange ratio indicates at the moment.
At the time of writing this report, Bitcoin price It is floating around $20.7K, down 2% in the past seven days. Over the past month, the cryptocurrency has lost 31% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has been consolidating sideways over the past few days | Source: BTCUSD on TradingView
Featured image from Fábio Hanashiro on Unsplash.com, charts from TradingView.com, CryptoQuant.com