Bitcoin Exchange Whale Ratio Surges, What Does It Mean?

Looks like crypto's value hasn't changed much in recent days | source: btcusd on tradingviewfeatured image from thomas lipke on unsplash.com, charts from tradingview.com, cryptoquant.com. The string data shows that the Bitcoin trading whale ratio has increased recently.

Bitcoin Exchange Whale Ratio (72-Hour MA) Breaks Above 85%

As pointed out by an analyst in a CryptoQuant post, the BTC whale ratio is rising right now. The “exchange whale ratio” here is an indicator that measures the ratio between the sum of the top 10 Bitcoin transfers to exchanges and the total exchange inflows.

Here, the 10 largest transactions going toward exchanges are assumed to be coming from the whales, which means that the indicator’s value tells us what part of the total exchange inflows is being contributed by these humongous holders right now.

When the whale ratio is high, this means that a significant percentage of trading deposits are made by whales at the moment. When the whale ratio is high, this means that a significant percentage of trading deposits are made by whales at the moment.

On the other hand, low values imply whale inflow activity isn’t too significant compared to the rest of the market, which is a trend that could be either neutral or bullish for BTC.

To become Top Crypto Through Dev Business.

The value of the metric seems to have surged in recent days | Source: CryptoQuant

The metric value seems to have soared over the past few days | Source: CryptoQuant. This suggests that whales are very active in trade these days.

In the past, the metric break over the 0.85 mark for extended periods has generally been shown to be bearish for the price of crypto. 85% of all entries are from whaling entities.

With the latest increase in the measure, its value has again decomposed into an area above level 0.85, This could mean the whales are getting ready for another massive sale.

However, for a bearish scenario to become probable, the Bitcoin whale ratio would need to stay at these elevated levels for at least several days. Earlier in the month, right before the rally kicked off, the indicator did enter into this zone, but since the spike didn’t last for too long, the coin’s price didn’t feel any bearish impact from it.

Earlier this month, just before the start of the rally, the indicator entered this zone.

Since the peak did not last too long, the price of the piece did not feel any bearish impact from it.

Looks like the value of the crypto hasn't moved much in the last few days | Source: BTCUSD on TradingView