Bitcoin Whale Exchange inflow remains at the highest level ever, will recovery to $ 22k be lost?
Data on the chain show that the Bitcoin whale supply to stock exchanges has remained at the highest levels ever, suggesting that the recent recovery over $ 22k may not last too long.
Bitcoin Top 10 Exchange inflows have been rising in recent days
As pointed out by an analyst in a CryptoQuant post, the current whale deposits on stock exchanges have their highest value in crypto history.
The “all exchanges influx” is an indicator that measures the total amount of Bitcoin that is currently entering the wallets of all centralized exchanges.
The sum of the ten best inflows specifically represents the total number of coins deposited by BTC whales.
When the value of this calculation is high, it means that whales are currently depositing a large amount of Bitcoin right now. Since investors usually switch to stock exchanges for sales purposes, such a trend may point to dumping from whales, and may therefore be bearish for the value of the coin.
On the other hand, a low value of the metric suggests that whales are putting a healthy amount into stock markets at the moment. This type of trend can be either bullish or neutral for BTC, depending on whether purchases are also taking place in the market at the moment.
Related reading | Bitcoin breaks above realized price again, bottom finally in?
Now, here’s a chart showing the trend in BTC’s top 10 inflows (21-day moving average) in recent years:
Looks like the value of the indicator has observed rise in the last few weeks | Source: CryptoQuant
As you can see in the graph above, the 21-day MA Bitcoin top ten inflow has been at an all-time high in recent times.
This suggests that whales are currently depositing into stock exchanges at a rate never seen before in crypto history. If these whales plan to sell their coins, the outcome could be bearish for BTC, which means that the recent rise to $ 22k may not last long.
Related reading | Sleeping giant wakes up, Bitcoin looks top in transactions worth over $ 1 million
The quantum has also shown the data for the BTC volume in the same chart. It seems that the volume of the coin has not been too high lately. This may mean that the last rally may have been driven by a few whales and not organic activity, which further suggests that the increase may be short-lived.
BTC price
At the time of writing, Bitcoin’s price is floating around $ 22k, up 11% in the last week. The chart below shows the trend in the value of the crypto over the last five days.
The price of the coin seems to have surged up over the last few days | Source: BTCUSD on TradingView
Featured image from Rémi Boudousquié on Unsplash.com, charts from TradingView.com, CryptoQuant.com
