Bitcoin Exchange Whale Ratio Surges Up As Price Declines
As pointed out by an analyst in a CryptoQuant , the BTC exchange whale ratio has risen to very high values recently.The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top 10 transactions to exchanges and the total amount of Bitcoin moving into exchanges.
Such a trend can prove to be bearish for the price of Bitcoin as it may show that whale dumping is going on currently.
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Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the past year:Looks like the value of the indicator has spiked up recently | Source:As you can see in the above graph, the Bitcoin whale ratio has surged up to some high values over the past couple of days. The current values are at similar levels to those observed in early January, shortly following which the price crashed down hard. The quant has marked this trend in the chart.
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Since the exchange whale ratio is at these values, a similar trend may follow now as well. In such a scenario, the outlook of the price of Bitcoin will be bearish at least in the short term.BTC Price
At the time of writing, Bitcoin’s price floats around $42.2k, down 1% in the last seven days. Over the past month, the crypto has lost 1% in value.
The below chart shows the trend in the price of BTC over the last five days.BTC's price seems to have sunk down over the last few days | Source:A few days ago, Bitcoin’s price had climbed up beyond the $45k mark, but the recovery didn’t last too long. Over the last few days, the coin has dropped down to the current $42k levels.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com