the fierce bitcoin (BTC) Saturday’s crash caused many crypto investors to panic. The race made a nice one bounce and soon we were hitting $50,000. However, there are a number of signals that may suggest that a further decline is not out of the question.
Bitcoin whales
According to on-chain CryptoQuant data are big investors, either whales, currently selling their bitcoin assets on a large scale. They come to this conclusion on the basis of their so-called exchange whale ratio. This ratio measures the ratio between the largest inflow and outflow to exchanges and the total inflow and outflow to whales.
This shows that whales often deposit BTC on exchanges. The exchange whale ratio peaked at 0.95 on Saturday and was back at 0.95 today. It seems very likely that large investors do not want to take any risk at the moment.
3/ Whales are still depositing $ BTC to exchanges. Exchange Whale Ratio reached over 95% again
Pro Chart????https://t.co/UwmHAauSd4
— CryptoQuant.com (@cryptoquant_com) December 6, 2021
Another dip?
Something similar was seen just before the massive crash towards $42,000 this weekend. Even then, the influx of bitcoins from whales’ wallets to crypto exchanges was very large. By now we all know what happened next.
According to crypto analyst Willy Woo, it is currently mainly small investors, or retail, who are increasing their bitcoin positions. Remarkable, because in previous crashes this year it was just the opposite. Retail sold to exchanges while whales hit large-scale.
Shrimps have been buying the dip (7d moving average), hints at a v-shaped recovery.
The 2017 top (red) was marked by shrimps selling after the price started crashing. pic.twitter.com/L93mpElhCa
— Willy Woo (@woonomic) December 4, 2021
These signals are not determined bullish for the bitcoin price. Of course, that does not mean that a further decline is inevitable. Everything is possible in the world of cryptocurrencies and only time will tell what the near future will bring for the bitcoin price.
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