Whales Move BTC: Analyst Finds Unmistakable Sign of Sell Pressure

• Bitcoin’s price has been range-bound since the market rally last month.
• Whale investors have been transferring coins to exchanges, indicating selling pressure.
• An analyst from a prominent blockchain analytics firm noted that the Exchange Whale Ratio has consistently stayed above 85% for over a week now, which could be indicative of an impending bearish trend.

Bitcoin Price Stagnation

Bitcoin [BTC] has wobbled in a tight trading range since last month’s market rally, dashing the broader market’s hopes of an extended bull run. After touching yearly peaks of $31,000 in June, the momentum has plateaued with the king coin oscillating between $29000 and $31,000, data from CoinMarketCap highlighted.

Whale Movements

The interest shown by TradFi giants in the potential of Bitcoin has piqued the interest of whale investors. These influential investors, by virtue of holding a large chunk of BTC’s circulating supply, contribute significantly to price fluctuations through their transaction activity. Whale movements thus become the subject of intense analysis over the years to spot periods of bull and bear markets.

Selling Pressure

Recently, an analyst from prominent blockchain analytics firm CryptoQuant drew attention to an intriguing whale behavior that could have implications for the market in the coming days. The analyst tracked the 72-hour Exchange Whale Ratio for BTC and found that this metric had steadily increased over the last week – something he termed an “unmistakable sign” of selling pressure.

Exchange Whale Ratio Explained

Exchange Whale Ratio is basically defined as relative size of top 10 inflow transactions to total inflows on an exchange. When whales begin transferring coins in large quantities to exchanges it introduces excess supply into the market and is typically seen as a sell signal. The Exchange Whale Ratio stays below 85% when bullish trends are dominant while when bears are dominant; this indicator trends above 85%. In this case, it had been hovering between 85%-90% for almost a week now – indicative that price drops could be around corner due to sell pressure from whales.

Conclusion

Whales have become increasingly active recently as they sense profit opportunities amidst traders’ expectations for a prolonged bull run on Bitcoin prices following its rally last month However if current selling pressure persists it is possible that we may see some serious drops in prices soon due to whale activity introducing excess supply onto exchanges