On-chain data shows that the proportion of Bitcoin trading whales has fallen recently as cryptocurrencies push past the $24k mark.

Bitcoin Exchange Whales Index (EMA 7) is currently below 0.50

According to a CryptoQuant post, the proportion of BTC trading whales has recently decreased, while the price has increased.

The “whale trade ratio” is an indicator that measures the ratio of the sum of the top 10 Bitcoin transactions on exchanges to the total exchange receipts.

whale trade ratio = sum of top 10 inflows (in BTC) ÷ total trade flows (in BTC)

Here, the ten largest transfers are considered, as they generally belong to the whales. Therefore, when the value of the ratio is high, it means that the whales are compensating for a large part of the total inflows at this time.

Since investors often send their BTC to exchanges for selling purposes, this trend may be a sign that the whales are unraveling right now. and thus it may be bearish for the price of the crypto.

On the other hand, low values ​​of the metric may suggest that whales currently occupy a normal amount of the total inputs. Such a trend could be neutral or bullish for the value of the coin.

Now, here is a graph showing the trend in the 7-day exponential moving average Bitcoin trade whale ratio over the past month:

The EMA-7 value of the metric seems to have dropped in recent days | Source: CryptoQuant

As you can see from the chart above, the Bitcoin Exchange Whale Index (EMA-7) has been below a value of 0.50 for seven of the last eight days.

The 0.50 mark is the dumping threshold for the 7-EMA version of the metric and as the indicator has been below this value recently, selling pressure for whales has been low.

While the ratio has declined, BTC price has enjoyed some bullish momentum as the coin broke above the $24k mark earlier today.

BTC price

At the time of writing, the price of Bitcoin is hovering around $23,500, down 1% over the past seven days. Over the last month, the crypto has gained 15% in value.

The chart below shows the trend in the price of the coin over the last five days.

It seems that the value of the cryptocurrency has observed an upward movement during the last days | Source: BTCUSD on TradingView

About ten days ago, Bitcoin had rallied above $23,000, but just a few days later, the price of cryptocurrencies dropped again. However, in the past few days, the coin has enjoyed strong upward momentum as it has reclaimed $23,000.

Earlier today, BTC even broke above $24k, though it wasn’t long before the crypto saw a drop and hit the current level.

Featured image of Karl-Heinz Müller on Unsplash.com, TradingView.com charts, CryptoQuant.com



This post Bitcoin breaks $24k as exchange whale ratio declines

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