Whale ratio continues to remain high


On-chain data shows that the Bitcoin exchange whale ratio has remained at a high reading lately, a sign that could be bearish for the crypto’s price.

Bitcoin Exchange Whale Ratio About To Enter The “Very High Risk” Zone

As explained by an analyst in a CryptoQuant afterthe 72-hour MA whale ratio is close to 0.90, the very high-risk zone.

The “switch whale ratio” is an indicator defined as the sum of the top ten inflows to exchanges divided by the total inflow.

In simpler terms, this statistic tells us what proportion of the total inflow is contributed by the ten largest transactions, which typically belong to the whales.

When the value of this indicator is higher than 0.85, it means that whales are currently taking a very large percentage of the inflow of currency.

Since investors usually transfer their Bitcoin to exchanges for selling purposes, such a trend could be a sign that whales are dumping right now.

The value of the indicator usually stays above this threshold during BTC bear markets, or fake bull for mass dumping.

Related literature | Bitcoin Trading Volume Drops From Recent Top

On the other hand, values ​​below 0.85 usually mean that the influx of whales is currently in a healthier equilibrium with the rest of the market. The value of the ratio usually stays in this region during bull runs.

Here is a chart showing the trend in the Bitcoin exchange whale ratio (72 hours MA) over the past few months:

It seems that the indicator has recently had a high reading | Source: CryptoQuant

As you can see in the chart above, the Bitcoin exchange whale ratio now stands at around 0.89, above the 0.85 threshold.

According to the figure in the post, values ​​above 0.90 can be considered the “very high risk” zone. So the current value of the indicator is very close to that.

Related literature | Investors can expect a downward trend for the Bitcoin and Ethereum market over the next 3 months

In this month, the value of the ratio has almost always stayed above the 0.85 line so far, with a few spikes above the 0.90 level.

The analyst believes that whales are currently active because of the FED May Meeting Minutes, and if the ratio remains high for the foreseeable future, it could pose problems for Bitcoin.

BTC price

At the time of writing, Bitcoin price is hovering around $28.8k, down 2% over the past seven days. In the past thirty days, the crypto has lost 30% in value.

The chart below shows the trend in the price of the coin over the past five days.

It seems that the price of the coin has fallen in recent days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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