CryptoQuant CEO Ki Young Ju is highlighting a possible catalyst driving Bitcoin’s selling pressure as the leading cryptocurrency now trades below $30,000.
In a CryptoQuant quick take, the head of the on-chain analysis firm points to the exchange whale ratio, an on-chain indicator that tracks the activity of deep-pocketed investors by dividing the top 10 BTC transactions by the total amount of BTC sent to crypto exchanges.
According to Ki Young Ju, the ratio is hovering at a level indicating bearish price action.
“BTC selling pressure seems to be high. Whales are depositing BTC to exchanges. When this indicator consistently keeps above 85%, the market has usually been bearish.”
According to the on-chain insights firm, US-based crypto exchange Coinbase is receiving the lion’s share of the BTC deposits.
“BTC net flow hits a five-month high
– All exchanges net flow hits a 5-month high, 28,700 BTC.
– A majority of net flow was from Coinbase.”
CryptoQuant adds that large BTC inflows to crypto exchanges began on July 16th, indicating that whales were gearing up to unload their Bitcoin holdings. The firm also takes a look at the reserves of BTC on all crypto exchanges, which according to them, just witnessed a major spike up.
“Bitcoin Reserve all Exchange exploded two days ago.”
At time of writing, Bitcoin is trading at $29,621, down 6.33% in the last 24 hours, according to CoinMarketCap.
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