Bitcoin could be going further south, at least according to the Whales Exchange Ratio.
Although bitcoin trades 25% higher than its multi-year bottom tapped in June at $17,500, CryptoQuant suggested that the asset could face upcoming price drops. This is because of the Bitcoin Exchange Whale Ratio, which has gone into an overheated state.The metric follows and displays the relative size of the top 10 inflow transactions compared to the total inflows on crypto exchanges. In bull markets, as the landscape certainly was until the end of 2021, the ratio is typically below 85%.
Since then, the metric has remained mostly below or around 0.85, which coincided with the massive bull run that resulted in BTC tapping an all-time high of $69,000 last November.in a decade. Since it has remained in this danger zone, CryptoQuant concluded that BTC could be primed for more price retracements as “there are no apparent signs of cooling down.”As mentioned above, BTC peaked in November but has been in a state of freefall ever since.