On-chain data shows that the Bitcoin exchange whale ratio has recently declined as the crypto breaks above the $24,000 mark.
Bitcoin Exchange Whale Ratio (EMA 7) is currently below 0.50
According to a post by CryptoQuantThe BTC exchange whales ratio has fallen recently while the price has surged.
There “exchange whale reportis an indicator that measures the ratio of the sum of the top 10 bitcoin transactions on exchanges to total exchange inflows.
exchange whale rate = sum of top 10 inbound txes (in BTC) ÷ total exchange inflows (in BTC)
Here, the ten most important transfers are considered because they usually belong to whales. Thus, when the ratio value is high, it means that whales currently represent a large part of the total entries.
Since investors typically send their BTC to exchanges for the purpose of selling, this trend may be a sign that whales are dumping at present. and therefore can be bearish for the price of the crypto.
On the other hand, low values of the metric may suggest that whales are currently occupying a normal amount of total intakes. Such a trend could be neutral or bullish for the value of the coin.
Now, here is a chart that shows the trend of the 7-day exponential moving average of the 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 chart above, the Bitcoin Exchange Whale Ratio (EMA-7) has been below a value of 0.50 for seven out 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, whale selling pressure has been weak.
As the ratio declined, the price of BTC saw some upward momentum as the coin broke above the $24,000 mark earlier today.
At the time of writing, The price of bitcoin is floating around $23,500, down 1% in the past seven days. Over the past month, the crypto has gained 15% in value.
The chart below shows the price trend of the coin over the past 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 over $23,000, but a few days later, the price of the crypto started falling again. However, in the past couple of days, the coin has seen a strong upward momentum as it rallied back to $23,000.
Earlier today, BTC even surged above $24,000, although it didn’t take long before the crypto crashed and returned to the current level.
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com