Curious new data shows that Bitcoin (BTC), whales move large quantities of coins to exchanges along with large outflows.
The exchange whale ratio indicator by CryptoQuant on-chain analytics firm, CryptoQuant, shows that large transactions account for more than 90% of all recent exchange deposits.
90% of all exchange inflows are made up by the top 10 deposits
Whales have been more active potential sellers on exchanges in the last week, a stark change from their previous behavior.
The alarm is sounded by the exchange whale ratio. This measures the relative size of the top 10 deposits to trades to other deposits.
CryptoQuant CEO Ki Young Ju stated, “Whales are depositing BTC for exchanges.”
“$BTC Exchange Whale ratio (72h MA reached 91%. This means that the top 10 deposits account for 91% of all deposit volumes across all exchanges during the hourly timeframe.
BTC/USD annotated chart. Source: Ki Young Ju/Twitter
These data offer interesting counterpoints to the current narrative about whales.
Cointelegraph reported that large wallets were buying during the recent downturn. On Tuesday, however, bids from whales rose on Bitfinex, going up from $50,000 to $54,000.
Ki also noted that outflows continue from exchanges, with reserves at their lowest level since mid-2018.
Chart of Bitcoin exchange reserves as of Nov. 22, 2018. Source: CryptoQuant
BTC price increases keep coming (and going).
Bitcoin experienced volatile spikes Tuesday, which would correspond with large-volume sudden actions on exchanges.
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This phenomenon has occurred several times in the last week. Each time, there is a sudden surge in BTC price action and then it dissipates at major resistance.
BTC/USD 30-minute candle charts (Bitstamp). Source: TradingView
Analysts believe that $60,000 must be returned and held as support to bring about a real change in the current downtrend.