Bitcoin (BTC), whales could be selling Bitcoin (BTC), as the BTC price action is struggling around $47,000
CryptoQuant, a chain analytics firm, warned in its Dec. 5 QuickTake market updates that exchange volume was increasing again.
Data shows that whales are increasingly keen to sell
CryptoQuant’s exchange whale ratio metric revealed that large Bitcoin investors are taking no chances with short-term price action.
The exchange whale ratio is the ratio of total inflows to outflows.
The metric climbed above the peak 0.95 level before Saturday’s plunge to $41,900 — and is now back in the same territory as Monday.
“Whales still deposit BTC to exchanges. CryptoQuant stated that the Exchange Whale Ratio has reached over 95% once again.
“Taker Buy, Sell Ratio” is still negative. This indicates that the futures market sentiment remains bearish.
Cointelegraph reported that open interest in futures markets dropped dramatically at the end last week. However, there is still some debate over whether this flushing out was sufficient to keep price action from further losses.
Annotated chart of the Bitcoin exchange whale ratio. Source: CryptoQuant
Michael van de Poppe, a Cointelegraph contributor, said that this is the period when most markets expect further downside.
“Just as three weeks ago, the majority expected a parabolic run in December.”
BTC gains are being recouped by exchanges
CryptoQuant continued to note that after briefly peaking immediately prior to the dip, exchange reserves are now back in their long-term downtrend.
Related: BTC sentiment “comparable to funeral” — 5 things you should be watching in Bitcoin this week
It added that the futures market began cooling down as the estimated leverage ratio fell -22%.
Annotated chart of exchange inflows Source: CryptoQuant
In contrast to the Bitcoin price corrections of 2021, small investors have been increasing their positions over the past few days.