Bitcoin Bearish Signal: Exchange Whale Ratio Spikes Up

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the Bitcoin exchange whale ratio has spiked up recently, a signal that shows dumping may be going on in the market.

Bitcoin Exchange Whale Ratio Surges Up As Price Declines

As pointed out by an analyst in a CryptoQuant post, the BTC exchange whale ratio has risen to very high values recently.

The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top 10 transactions to exchanges and the total amount of Bitcoin moving into exchanges.

In simpler terms, this metric tells us what part of the total exchange inflows the ten largest transactions make up for.

Usually, these large transactions belong to the whales. So if the value of the indicator becomes high, we can tell that whales are sending large amounts to exchanges as they now make up for a bigger part of the total inflows.

Such a trend can prove to be bearish for the price of Bitcoin as it may show that whale dumping is going on currently.

On the other hand, if the ratio goes down, it means a healthier balance is returning the market as whales control a lesser part of the exchange transactions.

Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the past year:

Looks like the value of the indicator has spiked up recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin whale ratio has surged up to some high values over the past couple of days.

The current values are at similar levels to those observed in early January, shortly following which the price crashed down hard. The quant has marked this trend in the chart.

Since the exchange whale ratio is at these values, a similar trend may follow now as well. In such a scenario, the outlook of the price of Bitcoin will be bearish at least in the short term.

BTC Price

At the time of writing, Bitcoin’s price floats around $42.2k, down 1% in the last seven days. Over the past month, the crypto has lost 1% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price seems to have sunk down over the last few days | Source: BTCUSD on TradingView

A few days ago, Bitcoin’s price had climbed up beyond the $45k mark, but the recovery didn’t last too long. Over the last few days, the coin has dropped down to the current $42k levels.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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