Bitcoin Bearish Signal: On-Chain Data Shows Whales Have Started Selling
September 28 2021 - 3:00PM
NEWSBTC
On-chain data shows whale ratio has exceeded the 0.50 mark,
historically a sign that whales are dumping in the short term.
Bitcoin Whales Have Started Selling Their Coins As pointed out by a
CryptoQuant post, the Bitcoin whale ratio has started going up
above the 0.50 level. This signal has usually meant a bearish
outlook for the crypto in the short term. The BTC all exchanges
whale ratio is an indicator that gives an estimation of how many
whales are sending their coins to exchanges. The metric does so by
taking the sum of the top 10 transactions to each exchange and
dividing it with the total inflow on all exchanges.
Exchange Whale Ratio= Sum of Top 10 Exchange Inflow TXs
(BTC) ÷ Total Exchange Inflows in BTC The
“inflow” is another indicator, it gives the total amount of Bitcoin
entering into exchange wallets from personal ones. When the whale
ratio rises, it means the top 10 transactions to exchanges are
taking up a larger part of the total BTC going into these
exchanges. This means more whales have started sending their coins
to exchanges, either for withdrawing to fiat or stablecoins, or for
purchasing altcoins. On the other hand, when the value moves down,
it means the general small transactions make up the majority of the
inflows to exchanges, and that Bitcoin whales aren’t moving their
coins around at this time. Related Reading | Could A Bitcoin
Bull Flag Leave Bears Blindsided Here is a chart showing the trend
in the value of the indicator over the past year: The Bitcoin whale
ratio has once again started climbing up | Source: CryptoQuant As
the above graph shows, the whale ratio has soared many times in the
past year, and whenever it has, a crash in the price of the coin
has also followed shortly after. Related Reading | JPMorgan
Analysts Say That Big Money Are Dumping Bitcoin For Ethereum Looks
like the whale ratio has once again started to move up as its value
now crosses 0.50. This could indicate that BTC might move down next
in the short term at least. BTC Price At the time of writing,
Bitcoin’s price floats around $42k, down 3% in the last seven days.
Over the last month, the crypto has lost 13% in value. The below
chart shows the trend in the price of the coin over 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 about China’s ban, Bitcoin has once again crashed down
back to $42k after going up near $44.5k. If the whale ratio is
anything to go by, the price might continue to move further down in
the short term. Maintaining above $40k is going to be crucial for
any big moves forward.
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