Bitcoin Recovery Slows Down As Whale Inflows Remain Elevated
24 June 2022 - 05:00AM
NEWSBTC
The latest recovery rally in the price of Bitcoin has now slowed
down as on-chain data shows signs of dumping from whales. Bitcoin
Exchange Whale Ratio Continues To Be At High Values As pointed out
by an analyst in a CryptoQuant post, BTC whales are sending their
coins to exchanges at the moment. The “exchange whale ratio” is an
indicator that measures the ratio between the sum of the top ten
transactions to exchanges and the total Bitcoin exchange inflows.
In simpler terms, this metric tells us how the whale transactions
(that is, the ten biggest transfers) compare with the total amount
going into exchanges. If the value of this ratio is high, it means
whales are making up for a large part of the inflows right now.
Such a trend can be a sign of dumping from these whales, and thus
can be bearish for the crypto’s price. Related Reading | Two
Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K On
the other hand, low values of the indicator imply whales are making
up a healthy part of the inflows currently. This trend can prove to
be either neutral or bullish for the value of BTC. Now, here is a
chart that shows the trend in the Bitcoin exchange whale ratio over
the last few months: The 72-hour MA value of the metric seems to
have been high recently | Source: CryptoQuant As you can see in the
above graph, the Bitcoin exchange whale ratio has stayed at pretty
high values in recent days. Generally, the indicator’s value
remains less than 0.85 during bull markets, while it stays at
higher values than that in bear market periods. Related Reading
| Bitcoin Rejected At $21K, Why A Retest Of The Lows Could Be
Positive The current value of the ratio is above 0.90, which means
more than 90% of the exchange inflow is from the ten largest
transactions right now. This can be a hint that whales are dumping
at the moment. Bitcoin attempted a recovery rally over the last few
days after hitting the low below $18k, but the run has now slowed
down as the value of the coin now looks to be moving sideways. This
halt in the move may possibly be because of selling from whales
that the exchange whale ratio is signaling right now. BTC Price At
the time of writing, Bitcoin’s price floats around $20.7k, down 2%
in the last seven days. Over the past month, the crypto has lost
31% in value. The below chart shows the trend in the price of the
coin over the last five days. Looks like the value of the crypto
has been consolidating sideways over the past few days | Source:
BTCUSD on TradingView Featured image from Fábio Hanashiro on
Unsplash.com, charts from TradingView.com, CryptoQuant.com
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