Bitcoin Sell Pressure Signalled by TradFi Giants, Whales

• Bitcoin has been stuck in a tight trading range since the market rally last month, disappointing investors.
• Whale investors have transferred large quantities of coins to exchanges, which introduces excess supply into the market and is seen as a sell signal.
• CryptoQuant’s Exchange Whale Ratio has stayed above 85% for the past week, indicating potential drops in price.

Bitcoin Price Analysis: Analyst Points Out “Unmistakable Sign” of Sell Pressure

Wobbling Bitcoin Price

Bitcoin [BTC] has been stuck 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 according to CoinMarketCap data.

Tracking Whales‘ Behavior

To analyze such cases, it is important to track the behavior of addresses holding large stashes of Bitcoins – called ‘whales’ – who by virtue of their holdings contribute significantly to price fluctuations through their transaction activity.

Whale Investors Showing Selling Pressure?

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

What is Exchange Whale Ratio?

Exchange Whale Ratio measures 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 ratio stays below 85% when markets are bullish while it moves above 85% during bearish markets.
In this case,the ratio had been moving between 85%-90% for almost a week now; signaling potential drops in price soon if sellers are exhausted quickly.

Interest Shown By TradFi Giants

The interest shown by traditional finance giants towards Bitcoin’s potential has piqued whale investors‘ interest too as they observe whether more selling pressure will come or not because of this influx from institutional players like Goldman Sachs and Morgan Stanley who are entering crypto space lately .