On-chain data shows that the Bitcoin whale is still highly valued at the moment, which indicates that more downsides may come for the cryptocurrency soon.
Bitcoin exchange whale ratio has been at high levels lately
As pointed out by an analyst at CryptoQuant MailRecently, the proportion of BTC exchange whales has remained at high values.
The “whale exchange ratioIt is the sum of the 10 largest bitcoin exchange transactions divided by total inflows.
In simpler terms, this indicator tells us the relative volume of whale transactions (i.e. the ten largest transactions) compared to the total amount of currencies that go to the exchanges.
When the value of this ratio goes up, it means that whales now account for a high proportion of the total exchange flows. This could be a sign that these huge owners have been dumped, and could be bearish for the price of Bitcoin.
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On the other hand, a low index value indicates that whales are a healthy part of total inflows at present. The continuation of this trend could be bullish for the price of the cryptocurrency.
Now, here is a chart showing the trend in the bitcoin exchange whale ratio (SMA 30) over the past few years:
Looks like the value of the indicator has been high recently | Source: CryptoQuant
As you can see in the chart above, the Bitcoin exchange whale ratio (SMA 30) is highly valued at the moment. The value of the index pulled back a bit before the recent rally that lifted the coin above $47,000, but it wasn’t long before it noticed a rally again.
In response to this new wave of whale dumping, the price fell below the $45K level again.
The ratio appears to be on the rise, or at least staying at the current high values, which could indicate that the price could see a further decline soon.
However, it is also possible for bitcoin whales to be done using . files dumping At the moment, the ratio could decline to allow the price to recover, but everything remains unknown.
At the time of writing this report, Bitcoin price It is floating around $43.1K, down 5% in the past seven days. Over the past month, the cryptocurrency has accumulated 13% gains.
The chart below shows the currency price trend over the past five days.
The price of BTC seems to have been moving sideways since the plunge down to $43k | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com