- Bitcoin’s whale rate reached its ATL, indicating a possible BTC decline.
- Price-DAA suggested a possible exit position at low volatility.
Bitcoin [BTC] lost the $29,000 region after a slight drop in price in the past 24 hours. For a coin that started the year well, its rollercoaster ride along the chart amid significant volatility was worth noting.
Read From Bitcoin [BTC] Price prediction 2023-2024
Whales take it back in time
However, it seems that BTC will not leave this state of comfort and declining value any time soon. According to SignalQuant, the state of the trade whale ratio could make the above projection a reality.
The exchange whale ratio is an indicator that measures the ratio between the sum of the top 10 transactions and exchanges and the total amount of Bitcoin going to exchanges.
High values of this statistic suggest that whales use exchanges in large quantities. But when the statistic is low, it implies how whales evade using exchanges for transactions.
Source: CryptoQuant
SignalQuant, which are analysis on CryptoQuant, noted that the exchange whale ratio was at an All-Time Low (ATL).
Historically, when the ratio bottoms out and recovers, the BTC price falls significantly. Referring to similar events in February 2018 and May 2021, the analyst said:
“In February ’18, and again in May ’21, as it recovered from an all-time low ratio, the price spiked and started to fall. Since Q4 ’22, the ratio has been on a downward spiral, so there hasn’t been a significant decline so far. But it’s worth keeping an eye on because it could recover at any time and when it does, the price could follow historical patterns.”
BTC tends towards low volatility
Meanwhile, Santiment showed that globally transactions by whales (not only on stock exchanges) have decreased. According to the on-chain analytics platform, $1 million BTC transactions, which were around 373 on July 29, had dropped to 142 at the time of writing.
The decrease in large moves means that BTC volatility could decrease and the price could continue to compress.
Source: Sentiment
So, will BTC fall below $28,000? For this potential projection, the Daily Active Addresses (DAA) can come in handy. In most cases, the price of Bitcoin has a strong correlation with the DAA.
How many 1,10,100 BTCs today?
At the time of going to press, the price DAA fell sharply to -73.37%. So far, when the DAA increases and the price falls, this is a potential exit indicator. But if the opposite is the case, it could be a buy signal.
Since the price fell and the DAA then rose, this is a sign that BTC could fall.
Source: Sentiment