On-chain data shows that the Bitcoin exchange’s whale ratio has fallen recently as the crypto rises above the $24k mark.
The Bitcoin Exchange Whale Ratio (EMA 7) is currently below 0.50
According to a post by CryptoQuant, the BTC exchange whale ratio has decreased recently while the price has risen.
“Exchange Whale ratio” is an indicator that measures the ratio between the sum of the top 10 Bitcoin transactions of exchanges and the total exchange inflow.
exchange whale ratio = sum of top 10 inflow txs (in BTC) ÷ total exchange access (in BTC)
Here, the ten largest transfers are counted as they mostly belong to the whales. When the value of the ratio is high, it means that whales make up a large part of the total inflow right now.
Since investors usually send their BTC to exchanges for selling purposes, this trend could be a sign that whales are currently dumping. and can therefore be bearish for the crypto price.
On the other hand, low values of the metric may indicate that whales are currently occupying a normal amount of the total influx. Such a trend can be either neutral or bullish for the coin’s value.
Now, here’s a chart showing the trend of the 7-day exponential moving average Bitcoin exchange whale ratio over the past month:
The EMA-7 value of the metric looks to have been down in recent days | Source: CryptoQuant
As you can see in the graph above, the Bitcoin Exchange Whale ratio (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 EMA-7 version of the metric, and since the indicator has been below this value recently, selling pressure from whales has been low.
While the ratio has declined, BTC’s price has seen some upside as the coin soared above the $24k mark earlier today.
At the time of writing, Bitcoin’s price is hovering around $23.5k, down 1% in the last seven days. Over the past month, the crypto has increased by 15% in value.
The chart below shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has observed some upwards movement during the last couple of days | Source: BTCUSD on TradingView
About ten days ago, Bitcoin had recovered above $23k, but just a few days later, the crypto price started to go downhill again. However, in the last couple of days, the coin has had a strong rally as it retook $23k.
Earlier today, BTC even broke above $24k, although it didn’t take long for the crypto to see a decline and come down to its current level.
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com