In July 2018 the “whale” indicator of the crypto market experienced a major market correction. In a response to the same event, Bitcoin prices fell to a new low of $4,000. This happened 2 months after the price of Bitcoin fell to a record low of $3,000. The indicator which marked the so-called “crypto winter”, has now been removed.
The Bitcoin (BTC) price is now down to around $6,400 USD, after the “Whale” indicator that preceded the $900 USD crash in December of 2018 returned last week.
The “whale” indicator has been long regarded as one of the most reliable trend predictors in the crypto community. The term refers to a small number of Bitcoin holders who have significant influence on the market and who are known to push the price of Bitcoin up or down.
Bitcoin proponents and investors are (understandably) predicting a ‘supercycle,’ with some speculating that the world’s biggest cryptocurrency by market value might reach $1 million.
However, if one technical indication is taken into account, the celebration may be ruined. In a tweet today, Ki-Young Ju, the creator of crypto analytics tools CryptoQuant, warned that the “$BTC Exchange Whale Ratio(72h MA) surpassed 90%.”
“It’s at its peak since February 2023, before the mass-dumping,” he said. Don’t take on too much risk with your longs. “Take care.”
The Whale Ratio of the $BTC Exchange (72h MA) has hit 90%.
It’s at its greatest level since February 2023, before the massive dumping. Don’t take on too much risk with your longs. Take care.
https://t.co/t3orEMC7sC/pic.twitter.com/vynh5ArB9I/t3orEMC7sC/t3orEMC7sC/t3orEMC7sC/t3orEMC7sC/t3orEMC7s
August 10, 2023 — Ki Young Ju (@ki young ju)
What is the tool for dumping whales?
According to CryptoQuant, ‘Whale Dumping’ is a measure of deposits from some of the biggest Bitcoin holders, dubbed ‘whales’ in financial circles.
Whale wallets help provide information on what large holders of Bitcoin and other cryptocurrencies are doing and how their trades may impact the market. Such holders are usually secretive about their trades, and their identities are frequently unknown, but tracking what whale wallets do helps provide information on what large holders of Bitcoin and other cryptocurrencies are doing and how their trades may impact the market.
CryptoQuant uses two metrics to determine how whales dump their coins: 1. The ‘All Exchanges Inflow Mean (24h MA)’ tool, which estimates the average amount of Bitcoin deposits to all crypto exchanges, and 2. the Exchange Whale Ratio tool, which compares the top 10 inflow transactions to total inflows.
When prices fly higher in a ‘fakeout’ or before a dump, the latter indicator is said to flash a ratio over 85%. “During a bull market, it often stays below 85%. On the other side, it typically stays over 85% in a down market or a false bull for a mass-dumping,” according to the CryptoQuant blog.
What is the current position of Bitcoin on the graph?
According to CryptoQuant, Bitcoin’s ‘Exchange Whale Ratio’ is sitting at 0.90 at press time, indicating circumstances ideal for’mass dumping.’
CryptoQuant is the source of this image.
The last time such levels were achieved, Bitcoin saw sharp losses on multiple occasions. When BTC dropped below $4,000 for many hours in March 2023, the tool hit a peak of 0.90. Even when Bitcoin dropped from over $6,000 to around $3,900 in November 2018, the tool remained above 0.85.
Bitcoin is now trading over $45,000 and has gained almost 15% in the last two days alone. But, given the $46,000 level of resistance, might the Whale Dumping tool prove to be correct? Only time will tell whether this is true.
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In the beginning, there was Bitcoin. That is, until it was overtaken by what became known as the ‘Whale’ indicator, which had been a steady contributor to the price of Bitcoin. The indicator began to indicate a new movement in the market, before the single biggest crash in the Bitcoin price history.. Read more about bitcoin price and let us know what you think.
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- bitcoin price
- crypto whale tracker
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