Bitcoin Bearish Signal: Whales Ramp Up Dumping
May 18 2022 - 3:00PM
NEWSBTC
On-chain data shows the Bitcoin exchange whale ratio has started to
sharply rise, a sign that these humongous holders may be beginning
to dump. Whales Are Behind Almost 90% Of Bitcoin Exchange Inflows
Right Now As pointed out by an analyst in a CryptoQuant post,
whales may be ramping up dumping, a sign that could be bearish for
the price of BTC. The “exchange whale ratio” is an indicator that
measures the ratio between the sum of the top ten Bitcoin
transactions to exchanges and the total exchange inflows. Since the
10 biggest transactions to exchanges usually belong to the whales,
this metric can tell us about the relative size of whale inflows to
the rest of the market. When the value of this metric is high (that
is, above 85%), it means whales currently make up a very large part
of the overall exchange inflows. Especially high values can suggest
that whales are mass dumping at the moment, something that could
prove to be bearish for the price of Bitcoin. On the other hand,
the indicator having values lesser than 85% can imply whale selling
in the market is at a healthy level right now. During bull runs,
the metric usually remains in this range. Related Reading
| Bitcoin Market Plunges Into Extreme Fear, How Scary Does It
Get? Now, here is a chart that shows the trend in the Bitcoin
exchange whale ratio (72-hour MA) over the course of 2022 so far:
The indicator's value seems to have surged up recently | Source:
CryptoQuant As you can see in the above graph, the Bitcoin exchange
whale ratio has shot up and is now approaching the 90% mark. This
suggests that whales may be starting to ramp up their dumping right
now. Earlier in the month, the ratio exceeded the 90% point and the
coin’s price plummeted down to below $26k. Related Reading
| New Data Shows China Still Controls 21% Of The Global
Bitcoin Mining Hashrate If the indicator keeps rising and a similar
trend follows this time as well, then more downside could be in
store for the cryptocurrency. BTC Price At the time of writing,
Bitcoin’s price floats around $29.7k, down 6% in the last seven
days. Over the past month, the crypto has lost 25% in value. The
below chart shows the trend in the price of the coin over the last
five days. Looks like the price of the crypto has mostly moved
sideways over the past few days | Source: BTCUSD on TradingView
Since Bitcoin’s quick rebound back above the $30k level from the
crash down to below $26k, the coin hasn’t shown much movement. At
the moment, it’s unclear when BTC may break out of this
consolidation that it has been stuck in during the past week.
Featured image from Unsplash.com, charts from TradingVIew.com,
CryptoQuant.com
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