Bitcoin Whale Selling Pressure Continues As BTC Dips Under $20k
September 16 2022 - 3:00PM
NEWSBTC
On-chain data shows Bitcoin whales have continued to put selling
pressure on the market as the price of the crypto now drops below
$20k. Bitcoin Exchange Whale Ratio Has Spiked Up To High Values As
pointed out by a post from CryptoQuant, the exchange inflows that
followed the US CPI release lead to the price crashing 10% in only
a couple of hours. The “exchange whale ratio” is an indicator that
measures the ratio between the sum of the top 10 Bitcoin
transactions to exchanges, to the total exchange inflows. Since the
ten largest transfers to exchanges are usually from the whales,
this metric’s value tells us how much of the total inflows are
coming from these humungous holders. When the value of the ratio is
high, it means whales are making up for a large part of the total
transactions to exchanges. Such a trend can be a sign of dumping
from this cohort. Now, here is a chart that shows the trend in the
Bitcoin exchange whale ratio (EMA 7) over the year 2022 so far: The
value of the metric seems to have been quite high in recent days |
Source: CryptoQuant As you can see in the above graph, the 7-day
exponential moving average of the Bitcoin whale ratio has been
elevated recently. This shows that a big part of the recent
activity on exchanges has been coming from these holders. Another
indicator, the Spent Output Value Bands, tells us what the
individual contributions to the inflows are from the different
holder groups in the market. Investors are put into these cohorts
based on the amount of BTC they are holding in their wallets.
Related Reading: Bitcoin Bearish Signal: Miners Continue Transfers
To Exchanges The below chart shows the trend in this metric
specifically for the 1k to 10k BTC and 10k+ BTC holder groups.
Looks like the two cohorts have been active in recent days |
Source: CryptoQuant As the graph shows, both the whales holding
between 1k to 10k BTC and those with 10k or more BTC have actively
contributed to the exchanges recently. A few large spikes from them
came right before the recent plummet in the Bitcoin price that took
its value down to $20k. Related Reading: Amidst Volatile Market
Uniglo (GLO) Keeps Surging Over 35%, Whilst Bitcoin (BTC) And
RIpple (XRP) Struggling The quant in the post notes that later
today’s values of the exchange whale ratio can be important in
judging how severe its moving average is going to be. BTC Price At
the time of writing, Bitcoin’s price floats around $19.7k, down 6%
in the past week. The value of the crypto has dipped below $20k now
| Source: BTCUSD on TradingView Featured image from Andrew Bain on
Unsplash.com, charts from TradingView.com, CryptoQuant.com
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