Bitcoin Whale

Bitcoin Whale Exchange Inflow Still At All-Time High, Will Recovery To $22k Lost?

Posted on

On-chain data shows that Bitcoin whale inflows to exchanges have remained at all-time highs of late, suggesting the latest recovery above $22k may not be too long.

Bitcoin Top 10 Exchange Inflows Increased in Recent Days

As one analyst noted in a CryptoQuant post, current whale deposits on exchanges are at their highest value in crypto history.

The “inflow from all exchanges” is an indicator that measures the total amount of Bitcoin currently entering the wallets of all centralized exchanges.

The sum of the top ten inflows, notably, represents the total number of coins deposited by BTC whales.

When the value of this stat is high, it means that whales are currently depositing a large amount of Bitcoin. Since investors usually switch to exchanges for selling purposes, such a trend could indicate whale dumping and could therefore be bearish for the currency’s value.

On the other hand, a low value of the metric means that whales are depositing a healthy amount of money into exchanges right now. These kinds of trends can be bullish or neutral for BTC, depending on whether the market is also currently buying.

Related literature | Bitcoin Breaks Above Realized Price Again, Bottom Finally In?

Here’s a chart showing the trend in BTC’s top 10 inflows (21-day moving average) over the past few years:

Looks like the value of the indicator has observed rise in the last few weeks | Source: CryptoQuant

As you can see from the chart above, the 21-day MA Bitcoin top ten inflows have been at the highest levels recently.

This suggests that whales are currently plunging into exchanges at a rate never seen before in the history of crypto. If these whales plan to sell their coins, the outcome could be bearish for BTC, which would mean the final rally to $22k won’t last long.

Related literature | Sleeping Giant Awakens, Bitcoin Sees Peak in Transactions Worth More Than $1 Million

The quant has also shown the data for BTC volume on the same chart. It seems that the volume of the coin has not been too high lately. This could mean that the latest rally may be driven by a few whales and not organic activity, further suggesting the increase could be short-lived.

BTC price

At the time of writing, Bitcoin’s price is hovering around $22k, up 11% over the past week. The chart below shows the trend in the value of the crypto over the past five days.

Bitcoin price chart

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