On-chain data shows that bitcoin whales have continued to exert selling pressure on the market as the price of the crypto has now dipped below $20k.
Bitcoin Exchange Whale Ratio Soars to Higher Values
As mentioned by a post crypto quantFollowing the US CPI release, the price dropped 10% in a matter of hours due to exchange inflows.
The “Exchange Whale Ratio” is an indicator that measures the sum of the top 10 bitcoin transactions for exchanges and the ratio of total exchange flows.
Since the ten largest transfers on exchanges are usually from whales, the value of this metric tells us what part of the total inflow is coming from these humble holders.
When the value to the ratio is high, it means that whales are making a large part of the total transactions for exchanges. Such a trend could be a sign of dumping from this group.
Now, here is a chart that shows the trend in the Bitcoin Exchange Whale Ratio (EMA 7) so far in the year 2022:
The value of the metric seems to have been quite high in recent days | Source: CryptoQuant
As you can see in the graph above, the 7-day exponential moving average of the bitcoin whale ratio has risen recently. This suggests that a large proportion of the recent activity on the exchanges is coming from these holders.
Another indicator, the spent output value band, tells us what is the individual contribution to the inflows from different holder groups in the market. Investors are placed into these groups based on the amount of BTC held in their wallet.
The chart below 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 whales with 1k to 10k BTC and 10k or more BTC have been actively contributing to the exchange recently.
Some of those big spikes came just before the recent drop in the price of bitcoin, which reduced its value to $20k.
Quantity notes in the post that today’s value of the post-exchange whale ratio could be crucial in deciding how severe its moving average is going to be.
At the time of writing, bitcoin is priced around $19.7k, down 6% over 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
Credit : www.newsbtc.com