CGD - Crypto Government Department logo CGD - Crypto Government Department logo
NewsBTC 2022-12-07 21:00:57

Bitcoin Bullish Signal: Exchange Whale Ratio Sharply Declines

On-chain data shows the Bitcoin exchange whale ratio has sharply declined recently, a sign that may prove to be bullish for the price of the crypto. Bitcoin 7-Day MA Exchange Whale Ratio Has Rapidly Gone Down Recently As pointed out by an analyst in a CryptoQuant post, the metric also saw a similar decline during the end of 2018. The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten transactions going to exchanges, and the total exchange inflows. The ten largest transfers to exchanges are assumed to be coming from the whales. So, this ratio tells us what part of the total exchange inflows is being contributed by these humongous holders right now. When the value of this metric is high, it means the majority of the inflows are made up by whales currently. Since one of the main reasons investors deposit to exchanges is for selling purposes, such values could be a sign that whales are dumping large amounts, and might hence be bearish for the price of the crypto. Related Reading: Glassnode: Bitcoin Holders Realized 14x More Losses Than Profits Recently On the other hand, the indicator having low values suggests whales are making a healthier contribution to the inflows, and could thus be either neutral or bullish for the value of BTC. Now, here is a chart that shows the trend in the 7-day moving average Bitcoin exchange whale ratio over the last few years: Looks like the 70-day MA value of the metric has been sharply falling off in recent weeks | Source: CryptoQuant As you can see in the above graph, the Bitcoin exchange whale ratio had a pretty high value just a few months back. However, since then, the indicator has been observing some rapid downtrend, and the ratio has now attained quite tame values. Related Reading: Bitcoin Investor Cohorts Now Have Close Cost-Basis, What Does It Say About Market? This means that whales have been reducing their inflow volumes recently, suggesting that selling pressure from them may be getting exhausted. The quant has also highlighted the trend in the exchange whale ratio during the previous Bitcoin cycle in the chart. It seems like a similar downtrend as now was also seen back in late 2018, when the bottom of that bear market formed. The analyst notes that while it’s impossible to say if the current sharp decline in the whale ratio means the bottom is in for this cycle as well, it’s likely that at least the volatility will now begin to cool down. BTC Price At the time of writing, Bitcoin’s price floats around $16.8k, down 1% in the last week. BTC has declined during the past day | Source: BTCUSD on TradingView Featured image from Thomas Lipke on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Διαβάστε την Αποποίηση Ευθυνών : Όλο το περιεχόμενο που παρέχεται εδώ στον ιστότοπό μας, τους υπερσυνδεδεμένους ιστότοπους, τις σχετικές εφαρμογές, τα φόρουμ, τα ιστολόγια, τους λογαριασμούς κοινωνικών μέσων και άλλες πλατφόρμες (“Site”) προορίζεται μόνο για τις γενικές πληροφορίες σας, που προέρχονται από τρίτες πηγές. Δεν κάνουμε καμία εγγύηση οποιουδήποτε είδους σε σχέση με το περιεχόμενό μας, συμπεριλαμβανομένης ενδεικτικά της ακρίβειας και της ενημέρωσης. Κανένα μέρος του περιεχομένου που παρέχουμε δεν αποτελεί οικονομική συμβουλή, νομική συμβουλή ή οποιαδήποτε άλλη μορφή συμβουλών που προορίζεται για τη συγκεκριμένη εμπιστοσύνη σας για οποιονδήποτε σκοπό. Οποιαδήποτε χρήση ή εξάρτηση από το περιεχόμενό μας είναι αποκλειστικά με δική σας ευθύνη και διακριτική ευχέρεια. Πρέπει να πραγματοποιήσετε τη δική σας έρευνα, να ελέγξετε, να αναλύσετε και να επαληθεύσετε το περιεχόμενό μας προτού βασιστείτε σε αυτά. Η διαπραγμάτευση είναι μια εξαιρετικά επικίνδυνη δραστηριότητα που μπορεί να οδηγήσει σε μεγάλες απώλειες, επομένως συμβουλευτείτε τον οικονομικό σας σύμβουλο πριν λάβετε οποιαδήποτε απόφαση. Κανένα περιεχόμενο στον ιστότοπό μας δεν προορίζεται να είναι παράκληση ή προσφορά