On-chain data shows the whale ratio has crossed the 0.50 mark, historically a sign that whales are dumping in the short term.
Bitcoin whales have started selling their coins
As indicated by a CryptoQuant post, the bitcoin whale ratio has started to go above the 0.50 level. This signal usually refers to a bearish outlook for crypto in the short term.
BTC All Exchange Whale Ratio is an indicator that estimates how many whales are sending to exchange their currency.
The metric does this by taking the sum of the top 10 transactions on each exchange and dividing it by the total flow of all the exchanges.
Exchange whale ratios= Total of Top 10 Exchange Inflow TXs (BTC) B Total Exchange Inflow in BTC
“Inflow” is another indicator, it enters the total amount of personal bitcoin in the exchange wallet.
When the proportion of whales increases, it means that the top 10 transactions of the exchange are taking up a large part of the total BTC going to these exchanges.
This means that more whales have started sending them to exchange coins, either to withdraw Fiat or Stablecoin, or to buy Altcoin.
On the other hand, when the value goes down, it means that ordinary small transactions make up the lion’s share of the flow in exchange and the bitcoin whale is not spinning their currencies at this point.
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Here is a chart that shows the price trend of the last one year index:
The Bitcoin whale ratio has once again started climbing up | Source: CryptoQuant
As the graph above shows, the whale ratio has increased many times over the past year, and whenever it has, the price of the currency has also plummeted.
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It looks like the whale ratio has started to rise again as its value has now exceeded 0.50. This may indicate that the BTC may go down further, at least in the short term.
At the time of writing, the price of Bitcoin is floating around $ 42k, down 3% in the last seven days. Last month, the crypto price lost 13%.
The following chart shows the trend of currency prices in the last five days:
BTC's price seems to have crashed down once again | Source: BTCUSD on TradingView
After showing some recovery from the crash due to news of China’s ban, Bitcoin has crashed again at $ 42k after moving closer to $ 44.5k.
If the whale ratio is anything to go by, prices could fall further in the short term. Maintaining above $ 40k is going to be important for any big move.