Bitcoin 7-Day MA Exchange Whale Ratio Has Rapidly Gone Down Recently
As pointed out by an analyst in a CryptoQuant , the metric also saw a similar decline during the end of 2018.The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten transactions going to exchanges, and the total exchange inflows.
The ten largest transfers to exchanges are assumed to be coming from the whales. So, this ratio tells us what part of the total exchange inflows is being contributed by these humongous holders right now.
When the value of this metric is high, it means the majority of the inflows are made up by whales currently. Since one of the main reasons investors deposit to exchanges is for selling purposes, such values could be a sign that whales are dumping large amounts, and might hence be bearish for the price of the crypto. On the other hand, the indicator having low values suggests whales are making a healthier contribution to the inflows, and could thus be either neutral or bullish for the value of BTC.Looks like the 70-day MA value of the metric has been sharply falling off in recent weeks | Source:As you can see in the above graph, the Bitcoin exchange whale ratio had a pretty high value just a few months back.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.8k, down 1% in the last week.
Featured image from Thomas Lipke on Unsplash.com, charts from TradingView.com, CryptoQuant.com