On-Chain Data Shows Bitcoin Whale Dumping Behind Dip Below $19k

On-chain data shows a surge in the bitcoin exchange whale before the cryptocurrency plunged below the $19,000 mark.

Bitcoin exchange whale hacked 90% right before price drop

As pointed out by an analyst at CryptoQuant MailThe activity of whales in the exchanges has recently been raised.

The “whale exchange ratio“It is an indicator that measures the ratio between the top ten inflows to exchanges and the total exchange inflows.

Supposed to be the top ten transfers of whalesso that the scale tells us what part of the total number of coins moving to the exchanges comes from these huge holders.

When the value of this indicator is high, it means that at the moment a significant part of the flows comes from whales. This trend could be a sign of dumping from this group and therefore could be bearish for the price.

On the other hand, low values ​​of the ratio could indicate that whales are a healthy part of the transactions for the exchanges at the moment. This type of trend can be bullish or neutral for the value of the cryptocurrency.

Historically, the scale has had values ​​above 0.85 during bear markets or fake bulls, while it has generally remained below this limit during periods of bullishness.

Now, here is a graph showing the trend in the bitcoin exchange whale percentage over the past two months:

The percentage of whale in the bitcoin exchangeThe value of the metric seems to have been elevated recently | Source: CryptoQuant

As you can see in the chart above, the bitcoin exchange whale ratio rose yesterday to a value of 0.9, which means that whales contributed 90% of the inflows to the exchanges.

This rise in the index came not long before the currency’s sharp drop below $19,000, suggesting that the sinking of whales may have been behind the drop.

The ratio has also remained high since then, which could mean that the group continues to deposit on exchanges, something that could prove bearish for BTC.

BTC price

At the time of writing this report, Bitcoin price It is floating around $19.3K, down 4% in the past seven days. Over the past month, the cryptocurrency has lost 17% of its value.

The chart below shows the currency price trend over the past five days.

Bitcoin price chart

Looks like the value of the crypto has rebounded back a little to above $19k again since the plunge yesterday | Source: BTCUSD on TradingView
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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