On-chain data shows that the whale ratio on bitcoin exchanges has continued to decline in recent times, a sign that could prove bullish for cryptocurrency prices.
Bitcoin exchange whale ratio 72-hour moving average is trending down recently
As a CryptoQuant analyst pointed out director, the Bitcoin exchange rate at the 72-hour moving average is in a downward trend. “Exchange Whale Ratio” is an indicator that measures the total and total ratio of the top 10 Bitcoin transactions to exchanges. currency inflow.
The 10 largest deposits on exchanges are usually whalethis metric tells us what portion of the total exchange inflow is contributed by these giant holders. means that there is
Since one of the main reasons investors deposit on exchanges is for the purpose of selling, this kind of trend could be a sign of massive dumping from this cohort, thus reducing the value of cryptocurrencies. It can be bearish. On the other hand, a low value for the ratio means that whales are not contributing disproportionately to the current inflow, which could be bullish for BTC’s price.
Here is a chart showing the trend of the 72-hour moving average (MA) Bitcoin exchange whale ratio over the past few years.
The 72-hour MA value of the metric seems to have observed some downtrend in recent months | Source: CryptoQuant
As the chart above shows, the 72-hour MA bitcoin exchange whale ratio has risen in the first half of this year, indicating that whales are increasingly dumping coins as prices plummet. However, by the third quarter of 2022 the metric slowed down, and in the last months of the year the trend reversed and the metric started a downward trend.
This means that whales have been putting down selling pressure lately. Interestingly, as you can see from the chart, he saw a similar pattern in the period from late 2018 to early 2019.in that cycle bear marketthis trend in whale rates coincided with the bottoming out of prices.
Bitcoin finally started showing some upward momentum as the whale ratio ended its bear market decline. If the trend continues this time around, the current downward trend in whale ratios could provide bullish relief to BTC investors.
As of this writing, Bitcoin is hovering around $16,700, down 1% over the past week.
Looks like the value of the crypto has gone up during the past day | Source: BTCUSD on TradingView
Featured image of Dylan Leagh on Unsplash.com, chart on TradingView.com, CryptoQuant.com