On-chain data shows that Bitcoin’s whale ratio has declined recently as the crypto surges above $24,000.
The Bitcoin Exchange Whale Ratio (EMA 7) is currently below 0.50
According to a CryptoQuant post, the BTC exchange’s whale ratio has been falling recently while the price has been rising.
The “Exchange Whale Ratio” is an indicator that measures the ratio between the sum of the top 10 bitcoin transactions on exchanges and the total exchange inflows.
Exchange Whale Ratio = Sum of Top 10 Inflow Txs (in BTC) ÷ Total Exchange Inflows (in BTC)
Here the ten largest transmissions are considered as they tend to belong to whales. So if the value of the ratio is high, it means that whales currently account for a large portion of the total inflows.
Since investors typically send their BTC to exchanges for sale, this trend may be a sign that whales are dumping for the moment. and therefore may be bearish for the price of the crypto.
On the other hand, low values of the metric may indicate that whales are currently taking a normal share of total inflows. Such a trend could be either neutral or bullish for the coin’s value.
Well, here is a chart showing the trend of the 7-day exponential moving whale ratio of the moving bitcoin exchange over the last month:
The metric’s EMA-7 value appears to have declined over the past few days | Source: CryptoQuant
As you can see in the chart above, the Bitcoin Exchange Whale Ratio (EMA-7) has been below a 0.50 level for seven of the last eight days.
The 0.50 mark is the dumping line for the EMA-7 version of the metric, and with the indicator trading below this level lately, selling pressure from whales has been light.
While the ratio has been falling, BTC’s price has seen some bullish momentum as the coin surged above $24,000 earlier today.
BTC price
At the time of writing, Bitcoin’s price is hovering around $23.5k, down 1% over the past seven days. Over the past month, the crypto has gained 15% in value.
The chart below shows the evolution of the coin’s price over the last five days.
It looks like the value of the crypto has been witnessing some bullish movement for the past few days | Source: BTCUSD on TradingView
Around ten days ago, Bitcoin had rallied above $23,000, but just a few days later, the crypto’s price started going downhill again. However, over the past few days, the coin has seen strong bullish momentum as it reclaimed $23,000.
Earlier today, BTC even broke above $24,000, although it didn’t take long for the crypto to tumble and bounce back to current levels.
Featured image by Karl-Heinz Müller on Unsplash.com, charts by TradingView.com, CryptoQuant.com
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