• CryptoQuant notes two indicators that Bitcoin is due for some short-term sell pressure.
• Whale activity is rising on Bitcoin spot exchanges, leading to a possible “dump alert”.
• In general, crypto flowing into exchanges is considered a sign that investors are seeking to liquidate their crypto, generating downward price pressure.
Two Considerations as Bitcoin Withdraws Toward $23K
Crypto analytics firm CryptoQuant has identified two data points to consider while monitoring the asset’s future short-term price action.
Whale Activity
According to CryptoQuant analyst abramchart, whale activity is rising on Bitcoin spot exchanges. The Bitcoin Exchange Whale Ratio – a metric comparing the top 10 Bitcoin transactions flowing into exchanges to the total number of exchange inflows – rose to 0.78 as of March 1st, compared to roughly 0.5 last month.
„The BTC Whale Rato metric is high for the next day in SPOT exchanges and this rise is often due to large inflows,“ explained the analyst. „This behavior can lead to selling pressure.“
Flowing Into Exchanges
The number of Bitcoin flowing into spot exchanges as of Monday was approximately 12,310 BTC – worth over $286 million at current prices. On Wednesday, inflows were about 10,588 BTC.
„Dump Alert“ Interpretation
Among 6 respondents to the data, 4 interpreted the analyst’s comments as „bearish.“
„Liquidating Crypto“