Bitcoin Exchange Whale Ratio Has Been on the Up Recently, a Sign That Could Prove to Be Bearish for the Asset's Price

60-Day MA Bitcoin Exchange Whale Ratio Has Been Rapidly Climbing Recently As pointed out by an analyst in a CryptoQuant Quicktake post, the

Fresh on-chain data shows the Bitcoin Exchange Whale Ratio has been trending up lately, an observation that could have bearish implications for the asset's price.

60-Day MA Bitcoin Exchange Whale Ratio Has Been Rapidly Climbing Up Lately

As per the latest analysis from an analyst on CryptoQuant, the Exchange Whale Ratio has seen a sharp growth recently. The “Exchange Whale Ratio” is an indicator that tracks the ratio between the sum of the top 10 transfers going to exchanges and the total exchange inflow.

The ten largest exchange inflows can be assumed to be coming from the whales, who are defined as the entities carrying the largest holdings on the network and thus, also the most influence in the market.

The Exchange Whale Ratio essentially tells us about how the exchange inflow activity of these humongous investors compares against that of the entire Bitcoin market.

When the value of this metric is high, it signals that the top 10 exchange inflows are making up for a significant portion of the market deposits. Investors usually make deposits when they want to utilize one of the services provided by these platforms, which could be to sell their holdings.

Hence, the indicator having a high value could imply these large holders are contributing to a significant amount of selling pressure at the moment. Naturally, such a trend can be bearish for the asset.

On the other hand, the ratio being low suggests the whales are making up for a relatively small portion of the total exchange inflows, which can have a bullish effect on the price.

Now, here's a chart that shows us the trend in the 60-day moving average (MA) of the Bitcoin Exchange Whale Ratio over the past several years:

As you can see in the above graph, the 60-day MA Bitcoin Exchange Whale Ratio has been forming steep upper trajectory over the past few months. This would suggest that the whales have been increasing their share of the exchange inflows recently.

The rise in the indicator has come as the price of the cryptocurrency has enjoyed some gains and set a new all-time high (ATH). In the chart, the quant has highlighted what happened during the last few times when the metric saw a similar rally.

It appears that the price of the crypto has usually seen a steep drawdown each time the Exchange Whale Ratio climbed up to high values. So far, BTC is yet to see a similar decline, though its price has lost its bullish momentum and has been moving sideways recently.

“My guess is that this hasn’t happened because of the huge demand for spot ETFs,” said the analyst. It now remains to be seen for how long the demand will be able to absorb this increasing selling pressure from the whales and if the price would succumb in a similar fashion as in the past when buying dries up.

BTC Price

At the time of writing, Bitcoin is trading at around $65,600, down more than 5% over the last seven days.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-exchange-whale-ratio-sign-prove-bearish-asset-price.html

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