Bitcoin Whales are looking to manipulate the market. Therefore, they sell their coins and buy them in lower prices. Ordinary traders use certain tools such as RSI in their analysis. The problem is that when everyone uses the same tools, whales make profit by prediction of the micro investors’ behavior. Thus, if you want to pass the whales ahead, you must use something more than a common technical analysis. Here, we want to discuss how to analyze Bitcoin Whales Behavior.
Bitcoin Whales Behavior Analysis
One of the useful tools used to monitor the whales’ behavior is the twitter account – Whale_alert. This account provides data related to transfer of coins like Bitcoin and stablecoins. These types of data include transfer of coins from wallets to exchanges and vice versa. For example, when someone has sent crypto from a wallet to an exchange, he probably wants to sell that crypto. If the transaction size is minor, that does not matter. Otherwise, it can make the price decline noticeably.
You may have known what we have discussed so far. But there are multiple factors that can make whales’ movements as misleading signal. For example, how much must a transaction size be in order to be known as a whale move? The answer to this question varies depending on the tracking tool that is used. As an example, Whale_alert provides reports, which worth as much as $1 million. However, this is not an amount, which would affect the market price. On the other hand, some of altcoins would be affected through small amounts.
Consequently, users must utilize other tools and know how to interpret them. HODL Waves is a useful tool for Bitcoin whales behavior analysis, which is provided by Glassnode for free.