As Bitcoin continues to struggle for $30,000, investors are trying to figure out which direction BTC will move.
While some analysts remain bullish, others warn investors that a decline may be coming.
While investors have not made a clear decision on how to take a position in BTC before the FED interest rate decision to be announced next week, CryptoQuant analyst named Kripto Mevsimi shared that there is a metric that investors should follow.
Stating that the Bitcoins that the whales invested in the exchanges steer the market, the analyst said that resolving the Bitcoin Whale Ratio is the key to unraveling the market momentum.
Explaining the whale ratio as “the top 10 inflow transactions on exchanges accounting for a large portion of the total BTC inflow on an exchange”, the analyst said that the whale ratio gives a clear sign of the direction the market will move towards.
Stating that the whale ratio in emerging markets is usually below 85%, the analyst warned investors against fake rises there.
“The whale ratio in emerging markets is usually below 85%, but there is something to be aware of here.
The whale ratio tends to linger above 85% when we are still in the grip of a bear market or when we are facing a fake bull rally for a mass dumping.
Looking at the current situation, the 72-hour Whale Ratio has reached unprecedented highs in the last 4-5 days and is well above 85%.
I think this is a clear sign of selling pressure.
Historically, this ratio has fluctuated between 85% and 90% and the whale ratio needs to fall for the price to rise.
Because the rises in Bitcoin came after the rapid declines in the whale ratio.
At this point, if this selling pressure on Bitcoin decreases rapidly, only then can a positive impact on price action be seen and pave the way for higher levels.”
Finally, the CryptoQuant analyst, who once again emphasized that this metric should be followed in the coming days, stated that whales can change the balances in the Bitcoin price, and said, “Watch out for whales, they can shift the balance.”