As a researcher with a background in cryptocurrency analysis, I’ve closely monitored the Bitcoin market for several years now. The recent trend of the Bitcoin Exchange Whale Ratio has caught my attention, as it could potentially signal bearish price action for the asset.
As a crypto investor closely monitoring the market, I’ve noticed an intriguing trend emerging from on-chain data: the Bitcoin Exchange Whale Ratio has been spiking upwards lately. Historically, such a development has often signaled potential bearishness for the asset’s price. Keeping a keen eye on these trends can help inform my investment decisions and strategies.
60-Day MA Bitcoin Exchange Whale Ratio Has Been Rapidly Climbing Recently
I, as an analyst, have observed a notable surge in the Exchange Whale Ratio as mentioned in a recent CryptoQuant Quicktake post. The Exchange Whale Ratio is a metric that monitors the relationship between the combined amount of the top 10 transfers into exchanges and the total exchange inflow.
The top ten exchanges with the greatest volume of inflows can be considered as sources for transactions by the “whale” community, which consists of the network’s largest stakeholders, possessing substantial holdings and consequently significant market sway.
The Exchange Whale Ratio signifies the relationship between the inflow activity of massive Bitcoin investors on cryptocurrency exchanges, and the overall inflow activity in the larger Bitcoin market.
When the level of this metric is elevated, it signifies that the top 10 exchange inflows account for a substantial proportion of total market deposits. In simpler terms, this implies that a large chunk of deposits in the market is being made through these top 10 exchanges. Investors deposit funds into these platforms to avail themselves of various services they offer, such as selling assets.
In simpler terms, a high value of this indicator may signify that big investors are heavily selling the asset at present, which could lead to a downward trend for the asset.
An alternate expression could be: Contrarily, a lower ratio implies that whale transactions represent a larger proportion of the overall trading volume, potentially leading to a rise in price.
Here’s a chart illustrating the development of Bitcoin’s 60-day moving average (MA) of Whale Ratio over the last few years.
In the provided graph, it is clear to see that the 60-day moving average of Bitcoin Exchange Whale Ratio has been significantly rising over the last several months. This observation implies that whales have been purchasing a larger proportion of exchange inflows in recent times.
The indicator’s upward trend coincides with the cryptocurrency’s price surge and establishment of a new record high (ATH). In the chart, the analyst has marked previous occurrences where this metric showed a comparable rise.
The trend shows that when the Exchange Whale Ratio reaches large sizes for a cryptocurrency, its price typically experiences a significant decrease. However, Bitcoin (BTC) has not yet followed this pattern, as it has not undergone a similar decline despite losing its initial upward momentum and currently moving in a horizontal direction.
The analyst hypothesizes that the lack of occurrence of this event may be due to the extensive appetite for spot ETFs. However, it remains uncertain how long this demand will withstand the intensifying selling pressure from major investors, or if the price will collapse in a similar manner as previously when purchasing wanes.
BTC Price
As I analyze the current market situation, Bitcoin’s value hovers around the $65,600 mark. However, it has experienced a decline of over 5% within the past week.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- USD ZAR PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- 1INCH PREDICTION. 1INCH cryptocurrency
- USD VES PREDICTION
- GLQ PREDICTION. GLQ cryptocurrency
2024-06-17 21:42