On-chain data shows that Bitcoin’s whale ratio is still high at the moment, suggesting more downside for the crypto could soon emerge.

Bitcoin Exchange’s Whales Ratio Has Held High Values ​​Recently

As an analyst pointed out in a CryptoQuant post, the proportion of BTC trading whales has been holding at high values ​​recently.

The “whale trade ratio” is defined as the sum of the top 10 Bitcoin transactions on exchanges divided by total inflows.

In simpler terms, this indicator tells us the relative size of whale transactions (ie the ten largest transactions) compared to the total number of coins moving on exchanges.

When the value of this ratio increases, it means that whales now account for a high percentage of total trade receipts. This may be a sign of abandonment by these massive holders and could prove bearish for the price of Bitcoin.

Related Reading | Quant Explains How Bitcoin’s Funding Rate Predicted The Latest Top

On the other hand, a low value of the indicator suggests that whales make up a healthy portion of total inflows at this time. Such a sustained trend can be bullish for the price of the crypto.

Now, here is a chart that shows the trend in the Bitcoin Trade Whales Index (SMA 30) over the past few years:

It seems that the value of the indicator has been high recently | Source: CryptoQuant

As you can see from the chart above, the Bitcoin Trade Whale Ratio (SMA 30) is at a high value right now. The value of the indicator had dropped a bit just before the last rally that took the coin above $47k, but it wasn’t long before it saw a rise again.

In response to this new wave of whale dumping, the price has fallen back below the $45,000 level.

Related Reading | Bitcoin Crashes 7% as Fed Turns Aggressive, Why This Might Be an Opportunity to Buy the Dip

The ratio seems to continue to rise, or at least remain at the current high values, which could suggest that the price could see a further drop soon.

However, it is also possible that the Bitcoin whales are done with their dumping for now and the ratio could decrease to allow the price to recover, but all remains to be seen.

BTC price

At the time of writing, the price of Bitcoin is hovering around $43,100, down 5% over the past seven days. During the last month, the cryptocurrency accumulated 13% in gains.

The chart below shows the trend in the price of the coin for the past five days.

BTC price appears to have moved sideways since crash to $43k | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com



This post More fix soon? Bitcoin Whale Ratio Remains Elevated

was published first on https://www.newsbtc.com/news/bitcoin/correction-soon-bitcoin-whale-ratio-elevated/

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