
Did you know whales in the crypto world create small fluctuations in specific price ranges? They always want to increase their profit. When they create a fluctuation, it is like a notification to retail investors to chase the rise. Most traders quickly respond to the bottom, and after some time the market quickly dumps, and they are able to take the huge profits.
If you look at the current Bitcoin market position, you have evidence of this strategy. In this type of situation, if you want to enter, first you should verify what Wales is doing or how many Wales are holding the assets. If the number of whales increases, it means some secret operation is in progress.
Sometimes the whales use the false breakout method. First, they remove their capital from the coin and want to break the important support levels. This movement created panic among traders, and everyone reacted quickly to sell their holdings. At this moment, when they buy the assets at low prices, it will impact the price, and the price quickly increases. After some time, whales sell their holdings, and the market quickly falls. In this type of strategy, the number of short orders always increases before the breakthrough and decreases after the break.
The negative news is the biggest tool for whales, and they deliberately exaggerate negative news for profit enlargement. Recently, Bitcoin was affected by negative news and fell 15%, and most of Wales at this time transferred their assets from exchanges to cold wallets, and buying more with reduce cost. The continuous Bitcoin declines indicate that whales are quietly accumulating more Bitcoin. If you look at the exchange data, you can see the number of buying orders increased, which shows a large inventory flow out from the exchanges.
It is also common for whales to obtain important information in advance and start to build a position. When the news is announced and retail investors quickly respond to the market, they gradually sell positions.
In summary, the whales always adopted the smartest strategy. If you have small funds, then you always make sure to learn about the whale’s movements. There are plenty of tools available, but Glassnode has unique features that help you identify the whale’s movements quickly.
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