Bitcoin (BTC) Exchange Whale Ratio Is Calming Down, a sign that may be bullish for BTC's price.

On-chain data shows the Bitcoin Exchange Whale Ratio for Binance has been going down recently, a sign that may be bullish for BTC's price.

On-chain data is showing that the Bitcoin (BTC) Exchange Whale Ratio for Binance has been going down recently, a sign that may be bullish for the asset’s price.

Bitcoin Whale Selling Pressure Is Calming Down

As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin whale selling pressure may be decreasing on the cryptocurrency exchange Binance. The indicator of relevance here is the “Exchange Whale Ratio,” which measures the ratio between the top 10 inflows and total inflow for a given centralized exchange.

The ten largest transfers to any platform can be assumed to be coming from the whale entities, so this metric’s value basically tells us about how the deposit activity of the large traders compares against the entire market.

When the value of the Exchange Whale Ratio is high, it means the whales are making up for a significant part of the inflows going to the exchange. As one of the main reasons why investors deposit to these platforms is for selling-related purposes, this kind of trend can imply these humongous investors are interested in distribution.

On the other hand, the indicator being low implies the whales are making up for a relatively healthy portion of the total exchange inflow, which, depending on other factors, can prove to be bullish for the asset’s price.

Now, here is the chart shared by the quant that shows the trend in the Bitcoin Exchange Whale Ratio for Binance over the last couple of years:

This chart shows the value of the Exchange Whale Ratio for Binance over the last two years. The indicator is highlighted in gray, while the price of Bitcoin is displayed in blue.

The analyst shared that the Bitcoin Exchange Whale Ratio went down noticeably last year, and this trend eventually helped the cryptocurrency break out of its consolidation phase, which had been going on for nearly two years.

After the cryptocurrency broke out of the $40,000 to $70,000 range last year, it continued to rally to new highs of around $71,000. However, later on, the cryptocurrency faced strong bearish pressure, and it dropped back down to the $39,000 level.

This bear market move had been quite persistent, and though the cryptocurrency recovered somewhat from the lows, it couldn’t manage to break out of the $40,000 resistance.

But recently, the cryptocurrency has finally begun to show signs of breaking out of the bearish trends that have been plaguing it throughout this year.

The analyst shared that the Bitcoin Exchange Whale Ratio has been following an overall downward trajectory recently, which suggests the whales are slowing down their crypto inflow activity.

Last year, a similar trend was also observed, as the analyst has noted in the chart. It would appear that the whales pulling back on their selling activity on the platform allowed the cryptocurrency to escape its consolidation phase back then.

The Exchange Whale Ratio for the exchange could now be to keep an eye on, as a continuation to its decline may help the cryptocurrency shake off its bearish winds this time as well.

In some other news, activity related to the stablecoins has noted a uptick recently, as another analyst has pointed in a Quicktake post.

Both the Active Addresses and Tokens Transferred metrics have seen an increase for all ERC-20 stablecoins recently. Investors often use these tokens for buying into volatile cryptocurrencies like Bitcoin, so an increase in transaction activity related to them can be a bullish sign for the prices of BTC and others.