On-chain data shows that the first 10 Bitcoin whale flows are a historical bearish signal at the moment, something that could pose a problem for the new high.
The top 10 bitcoin trading flows (whales) have peaked recently
As pointed out by an analyst at CryptoQuant Mail The top 10 forex (BTC) inflows showed a bearish formation recently.
The “Flow of all exchanges“Is an indicator that measures the total amount of bitcoin entering the wallets of all exchanges during a specified period.
Investors usually deposit their bitcoins on exchanges for selling purposes. Therefore, any spikes in the scale could be bearish relative to the cryptocurrency’s price.
The modification of this indicator is the “Top 10 Incoming Trades”, which measures the sum of the ten largest transactions going to central exchanges.
Because these conversions usually belong to whales, however, the high values of the scale may be a sign of the sinking of these massive Bitcoin holders.
On the other hand, lower first 10 values of the flow may indicate that the whales are selling a normal amount of coins at the moment.
Now, here’s a chart showing the trend in the top 10 Bitcoin flows over the past few years:
Looks like the value of the indicator is forming a peak | Source: CryptoQuant
In the above chart, Quantum has identified important trend areas for the top 10 bitcoin exchange flows during this period.
It seems that when the indicator has formed a peak, the price of bitcoin is always affected shortly after the trend.
Now, the top ten whale flows seem to form a similar peak again. If the pattern is correct, then this could be a bearish signal for the price of the coin.
However, it’s also worth noting that the gauge hasn’t yet formed a full turn yet, so it can still go up or move sideways and the signal won’t go off.
yesterday, Bitcoin price finally gained some strong momentum and broke through the $45,000 mark. Now, the price is above 47 thousand dollars, a level that the coin has not visited since the beginning of the year.
At the time of writing, the coin is trading at around $47.2K, an increase of 15% in the past seven days. Over the past month, the cryptocurrency has gained 25% in value.
The chart below shows the trend in BTC prices over the past five days.
The price of BTC seems to have shown some sharp uptrend over the past day | Source: BTCUSD on TradingView