Bitcoin Bullish Signal: Exchange Whale Ratio Plunges

On-chain data shows that the Bitcoin exchange whale ratio has taken a plunge recently. Here’s why this may be bullish for the asset’s price. Bitcoin Exchange Whale Ratio Has Registered A Sharp Decline Recently As pointed out by an analyst in a CryptoQuant post, the selling pressure in the market may be diminishing right now. [...]

The post Bitcoin Bullish Signal: Exchange Whale Ratio Plunges appeared first on Crypto Breaking News.

View Details

Bitcoin Bullish Signal: Exchange Whale Ratio Sharply Declines

On-chain data shows the Bitcoin exchange whale ratio has sharply declined recently, a sign that may prove to be bullish for the price of the crypto. Bitcoin 7-Day MA Exchange Whale Ratio Has Rapidly Gone Down Recently As pointed out by an analyst in a CryptoQuant post, 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. Related Reading: Glassnode: Bitcoin Holders Realized 14x More Losses Than Profits Recently 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. Now, here is a chart that shows the trend in the 7-day moving average Bitcoin exchange whale ratio over the last few years: Looks like the 70-day MA value of the metric has been sharply falling off in recent weeks | Source: CryptoQuant As you can see in the above graph, the Bitcoin exchange whale ratio had a pretty high value just a few months back. However, since then, the indicator has been observing some rapid downtrend, and the ratio has now attained quite tame values. Related Reading: Bitcoin Investor Cohorts Now Have Close Cost-Basis, What Does It Say About Market? This means that whales have been reducing their inflow volumes recently, suggesting that selling pressure from them may be getting exhausted. The quant has also highlighted the trend in the exchange whale ratio during the previous Bitcoin cycle in the chart. It seems like a similar downtrend as now was also seen back in late 2018, when the bottom of that bear market formed. The analyst notes that while it’s impossible to say if the current sharp decline in the whale ratio means the bottom is in for this cycle as well, it’s likely that at least the volatility will now begin to cool down. BTC Price At the time of writing, Bitcoin’s price floats around $16.8k, down 1% in the last week. BTC has declined during the past day | Source: BTCUSD on TradingView Featured image from Thomas Lipke on Unsplash.com, charts from TradingView.com, CryptoQuant.com

View Details

Bitcoin Exchange Whale Ratio Hits New High Since 2022 Impact On Price?

Based on price action data, the last two weeks in October are the most bullish period in the Bitcoin price history. However, why that hasnt been the story for the premier cryptocurrency over the past two weeks seems to be the question on every investors mind. The price of BTC has failed to capitalize on its recent bullish momentum, falling to as low as $65,000 at some point in the past week. Interestingly, the latest on-chain observation suggests that this period of sluggishness might not be over yet for the market leader. Is The Rising Exchange Whale Ratio Bullish Or Bearish? In a recent Quicktake post on the CryptoQuant platform, an on-chain analyst pointed out that the Bitcoin Exchange Whale Ratio has seen a notable surge in recent weeks. The Exchange Whale Ratio metric measures the ratio between the sum of the top 10 largest transfers into centralized exchanges and the total exchange inflow. Related Reading: Bitcoin MACD Turns Bullish Since 2023: Predictions Of Cycle Top And Next Bear Market Bottom For clarity, it is assumed that the 10 largest inflows into exchanges are executed by whales, which are entities that wield significant influence on the market due to their substantial crypto holdings. The Exchange Whale Ratio basically assesses the level of activity of this cohort of investors compared to the rest of the market. A high Exchange Whale Ratio indicates that the top 10 largest exchange inflows dwarves the incoming transfers from the rest of the market. On the other hand, when the value of this metric is low, it suggests that the whales only make up a relatively healthy part of funds flowing into centralized exchanges. According to data from CryptoQuant, the seven-day moving average of Bitcoins Exchange Whale Ratio recently reached its highest value since November 2022. The Quicktake analyst pointed out that the spike in this metric could be bearish for the value of the flagship cryptocurrency, as it implies that whales might be putting a significant amount of selling pressure on the market. Inflows into centralized exchanges typically have a bearish impact on the Bitcoin price, as selling is one of the services offered by these platforms. Moreover, whales moving their funds to trading platforms can set off a sell-off cascade, as other investors often watch their moves due to their market influence. Bitcoin Price At A Glance As of this writing, the price of Bitcoin stands around $66,700, reflecting an almost 2% decline in the past 24 hours. This single-day performance underscores how sluggish the premier cryptocurrency has been in recent days. According to CoinGecko data, the price of BTC is down by over 3% in the past week. Related Reading: Bitcoin Price To See 70%+ Powerful Bull Wave To Push It Over $100,000, How High Can It Go? Featured image created by Dall.E, chart from TradingView

View Details

Bitcoin To Drop Further? Whales Show Signs Of Dumping

On-chain data shows the Bitcoin exchange whale ratio has spiked recently, something that could lead to further downside in the asset’s value. Bitcoin Exchange Whale Ratio Has Sharply Surged Recently As pointed out by an analyst in a CryptoQuant post, the exchange whale ratio is currently at its highest level since September 2019. The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top 10 inflows to exchanges and the total exchange inflows. An “exchange inflow” is any movement of Bitcoin towards the wallets of centralized exchanges from addresses outside such platforms (like self-custodial wallets). The top 10 inflows here refer to the 10 largest inflow transactions going towards these platforms. Generally, these largest transfers are coming from the whales, so the exchange whale ratio can tell us how the inflow activity of the whales currently compares with that of the entire market (the total inflows). When this indicator has a high value, it means these humongous holders are making up a large part of the total inflows currently. As one of the main reasons why investors move their coins to exchanges is for selling-related purposes, this kind of trend can be a sign that whales are selling right now. On the other hand, low values of the metric imply this cohort isn’t making too many inflows relative to the rest of the market. Such a trend can be either neutral or bullish for the cryptocurrency’s price, depending on some other market conditions. Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the last few years: Looks like the value of the metric has been pretty high in recent days | Source: CryptoQuant As displayed in the above graph, the Bitcoin exchange whale ratio has observed a pretty large spike recently. This suggests that whales are making up a rather large part of the total exchange inflows currently. Related Reading: Bitcoin Block 788695: The Day Transaction Fees Took The Crown The metric has crossed the value of 0.8 in this spike, implying that more than 80% of the inflows are coming from these humongous investors right now. This level of ratio hasn’t been seen in the market since way back in 2019. This previous spike of similar scale occurred as the price was winding down from the April 2019 rally, and shortly after it took place, Bitcoin registered an extension in its drawdown. An even larger spike in the ratio was also observed earlier in the same year, around when the aforementioned April 2019 rally topped out. The timings of these two spikes may suggest that it was the dumping from the whales that influenced the market and caused the price to go down. Related Reading: If Over 2,300 Banks In America Are Bankrupt, Will Bitcoin Break Above $40,000? If these previous instances of whale inflow activity of similar levels are anything to go by, then the Bitcoin price may face a bearish decline in the near term due to the current potential selling pressure from this cohort. The drawdown may have possibly also already started, as the cryptocurrency’s price has taken a dive below the $28,000 mark today. BTC Price At the time of writing, Bitcoin is trading around $27,900, down 2% in the last week. BTC has plunged in the past day | Source: BTCUSD on TradingView Featured image from Thomas Lipke on Unsplash.com, charts from TradingView.com, CryptoQuant.com

View Details