On-Chain Data Shows Bitcoin Whale Dumping Behind Dip Below $19k

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the Bitcoin exchange whale ratio spiked up just before the crypto’s plunge below the $19k level.

Bitcoin Exchange Whale Ratio Breached 90% Right Before The Price Dip

As pointed out by an analyst in a CryptoQuant post, the whale activity on exchanges has been raised recently.

The “exchange whale ratio” is an indicator that measures the ratio between the top ten inflow transactions to exchanges and the total exchange inflows.

The ten biggest transfers are assumed to be from the whales, so that the metric tells us what part of the total number of coins moving into exchanges is coming from these humungous holders.

When the value of this indicator is high, it means a large part of the inflows is coming from whales right now. Such a trend can be a sign of dumping from this cohort and can therefore be bearish for the price.

On the other hand, low values of the ratio can suggest whales are making up a healthy part of the transactions to exchanges at the moment. This kind of trend can either be bullish or neutral for the crypto’s value.

Historically, the metric has usually had values above 0.85 during bear markets or fake bulls, while it has generally remained below this threshold during bull runs.

Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the last couple of months:

The value of the metric seems to have been elevated recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin exchange whale ratio surged up yesterday and hit a value of 0.9, implying that whales contributed 90% of the inflows to exchanges.

This spike in the indicator came not too long before the plummet in the price of the coin below $19k, suggesting that dumping from whales may have been behind the drop.

The ratio has also remained elevated since then, which could mean the cohort is continuing to deposit to exchanges, something that could prove to bearish for BTC.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.3k, down 4% in the last seven days. Over the past month, the crypto has lost 17% in value.

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

Looks like the value of the crypto has rebounded back a little to above $19k again since the plunge yesterday | Source: BTCUSD on TradingView

Featured image from Karl-Heinz Müller on 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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