On-chain data shows the top 10 Bitcoin whale inflows are forming a historic bear signal right now, something that could spell trouble for the new rally.
Bitcoin Top 10 Exchange Inflows (Whales) Form A Peak Recently
As pointed out by an analyst in a CryptoQuant post, the BTC top ten exchange inflows have showed a bearish formation recently.
The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin entering wallets of all exchanges during a specific period.
Investors usually deposit their BTC to exchanges for selling purposes. Therefore, any spikes in the metric can be bearish for the price of the crypto.
A modification of this indicator is the “top 10 exchange inflow,” which measures the sum of the ten largest transactions going to centralized exchanges.
As these transfers usually belong to whales, high values of the metric may be a sign of dumping from these massive Bitcoin holders.
On the other hand, low top ten inflow values may suggest that whales are selling a normal amount of coins at the moment.
Now, here is a chart that shows the trend in the Bitcoin top ten inflows over the past few years:
Looks like the value of the indicator is forming a peak | Source: CryptoQuant
In the above chart, the quant has marked the important regions of trend for the top ten Bitcoin exchange inflows during this period.
It seems like whenever the indicator has formed a peak, the price of Bitcoin has always taken a hit soon after the trend.
Now, the top ten whale inflows seem to be forming a similar peak again. If the pattern holds true, then this could be a bearish signal for the price of the coin.
However, it’s also worth noting that the metric hasn’t yet formed a full turn yet, so it could still continue to go up or move sideways and the signal won’t go off.
Yesterday, Bitcoin’s price finally gained some strong momentum and broke past the $45k barrier. Now, the price is above $47k, a level that the coin hasn’t visited since the very start of the year.
At the time of writing, the coin is trading around $47.2k, up 15% in the last seven days. Over the past month, the crypto has gained 25% in value.
The below chart shows the trend in the price of BTC over the last five days.
The price of BTC seems to have shown some sharp uptrend over the past day | Source: BTCUSD on TradingView