- Cryptoquant marks Whale Ratio as the key to unraveling market momentum.
- Whale Ratio arises when the top 10 BTC inflows dominate the total BTC inflows.
- The Whale Ratio often hovers below the 85% mark in a bullish market.
According to Cryptoquant, the leading on-chain data and analytics provider, Whale Ratio is the key to unraveling market momentum. In a Twitter thread, the analytics platform explained how to use the Whale Ratio indicator to understand the cryptocurrency market.
Cryptoquant explained that Whale Ratio comes into play when the top 10 Bitcoin inflow transactions comprise a large chunk of the total BTC inflows on an exchange. To figure this out, Cryptoquant notes that users need to find Whale-Focused Exchanges with Top 10 Inflows and their relative cumulative size to total inflows.
The analytics platform noted that this ratio often hovers below the 85% mark in a bullish market. However, it cautions that in the bear market’s clutches, or when facing a false bull run ripe for mass-dumping, the ratio tends to linger above 85%.
Using recent data, Cryptoquant observed that the 72-hour Whale Ratio reached peak levels unseen in the past four to five days. According to Cryptoquant’s analysis, that development signifies a selling pressure for Bitcoin. It noted that, from historical behavior, the ratio may not climb higher but could comfortably sit between 90% and 85%.
What that means is that there is high selling pressure for Bitcoin. However, things can change very quickly. Cryptoquant noted that a quick turnaround could generate a positive impact on Bitcoin’s price action, paving the way for the price to push toward higher levels.
Cryptoquant considers the Whale Ratio metric a significant indicator and one to watch. The analytical platform advised users to watch it closely, noting that it could provide the necessary information to navigate the tricky cryptocurrency market. It also acknowledged the significance of whales on the crypto market, confirming they can tip the scale without prior notice.
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