Bitcoin Whales Increasing Selling Pressure, Potential Drawdown
Recent on-chain data indicates that Bitcoin whales have been selling off their holdings, which could potentially lead to a drawdown for the asset.
Spike in Bitcoin Exchange Whale Ratio
According to an analyst from CryptoQuant, the price of Bitcoin may correct towards the $31,000 to $32,000 range due to the current whale selling pressure. This is based on the “exchange whale ratio,” which measures the ratio between the top 10 transfers to exchanges made by whales and the total exchange inflow.
Whale Inflow Activity and Selling Pressure
The whales, or large investors, often transfer their coins to exchanges for various purposes, including selling. When the whales dominate the total exchange inflows, it indicates a rising selling pressure from this group.
Bearish Indicator at 0.90 Mark
A historically bearish level for Bitcoin is when the exchange whale ratio crosses the 0.90 mark, with 90% of total inflows coming from whale wallets.
Rise in Whale Inflows
The chart displaying the trend in the 72-hour moving average of the Bitcoin exchange whale ratio shows a recent rise above the 0.90 level, suggesting that whales have significantly increased their inflows.
Potential Volatility and Local Bottom Formation
While high values of this metric don’t necessarily indicate bearishness for Bitcoin, it’s possible that whales are opening positions on the derivatives market. However, based on past patterns, increased volatility is expected with a potential drop to the $31,000 to $32,000 range.
BTC Price Consolidation and Potential Change
Bitcoin has been consolidating above $34,000 without a clear direction. However, considering the exchange whale ratio, there might be a change coming soon for the asset.
Hot Take: Bitcoin Whales Increase Selling Pressure, Potential Drawdown
Recent on-chain data suggests that Bitcoin whales have been ramping up their selling activity, which could lead to a potential drawdown for the cryptocurrency. The exchange whale ratio, measuring the inflow activity of whales compared to the rest of the market, has spiked above the historically bearish 0.90 mark. This indicates a significant rise in selling pressure from these large investors. Based on past patterns, increased volatility is expected, with a possible drop in Bitcoin’s price to the $31,000 to $32,000 range. As Bitcoin continues to consolidate above $34,000, it’s important to monitor the actions of these whales as they can influence market trends and direction.
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