Bitcoin Bullish Sign: Share of Exchange Whales Declines Sharply

On-chain data shows that Bitcoin’s share of trading whales has declined sharply recently, a sign that may prove bullish for the crypto’s price.

Bitcoin MA Exchange 7-Day Whale Ratio Has Been Declining Rapidly Recently

As noted by an analyst in a CryptoQuant mailthe metric also saw a similar decline in late 2018.

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

The ten largest transfers to exchanges are assumed to come from the Whales. Therefore, this ratio tells us how much of the total foreign exchange inflows are being contributed by these giant holders at the moment.

When the value of this metric is high, it means that the majority of the entries are currently made up of whales. Since one of the main reasons investors deposit into exchanges is for selling purposes, such values ​​could be a sign that whales are spewing out large amounts and therefore could be bearish for the price of the stock. cryptography.

On the other hand, the indicator having low values ​​suggests that the whales are making a healthier contribution to inflows and therefore could be neutral or bullish for the value of BTC.

Now, here’s a chart showing the trend in the 7-day moving average of Bitcoin’s share of exchange whales over the past few years:

Looks like the 70-day MA value of the metric has been sharply falling off in recent weeks | Source: CryptoQuant

As you can see in the chart above, the Bitcoin exchange whale ratio was quite high in value just a few months ago.

However, since then, the indicator has been observing a rapid downward trend, and the ratio has now reached quite moderate values.

This means that the whales have been reducing their entry volumes recently, suggesting that the selling pressure from them may be wearing off.

The quant has also highlighted the trend in the whale exchange index during the previous Bitcoin cycle on the chart. It looks like a similar downtrend to what was now seen in late 2018 as well, when the bottom of that bear market formed.

The analyst notes that while it is impossible to say whether the current sharp decline in the proportion of whales means that this cycle is also bottoming out, it is likely that volatility will at least now begin to cool.

Bitcoin price

At the time of writing, bitcoin price It floats around $16.8k, down 1% in the past week.

Bitcoin price chart

BTC has declined during the past day | Source: BTCUSD on TradingView
Featured image from Thomas Lipke on, charts from,

Add Comment