People familiar with cryptocurrency keep on hearing the term ‘Whales.’ Cryptocurrency whales or crypto whales refer to individuals or entities holding large amounts of cryptocurrencies. They are easily able to manipulate the currency valuation. No wonder this word is a red signal in the crypto world.
Since the whales can manipulate the market, a Bitcoin trader must understand how the whales can affect their trade capabilities and how they can impact their trade.
Bitcoin whales have an ample amount of BTC in their wallets. They either transfer or dump a large amount of BTC, negatively affecting a small trader and resulting in losses.
Recently, around 3463 BTC amounting to $ 73,208,868 were transferred from Coinbase to an unknown wallet. This movement was big enough to create commotion amongst the small traders.
Small traders can keep track of the whales by accessing readily available trading data. Dedicated crypto websites such as Watcher. Guru helps a trader keep track of the whale’s activities. Analytics platform Whalemap also provides trading charts that enable investors to gain an edge over the whale’s movement.
Ways to keep track of whales
There are primarily four ways in which whales can be tracked.
1.Monitoring Known Whale Address: The traders must keep a vigil on the big whale addresses to plan the trades.
2.Monitoring Ordering Book: Monitoring order books require the traders to track any larger than normal buy or sell orders.
3. Keeping track of trades on exchanges.
4. Monitoring the market capitalization of a particular cryptocurrency when there is no significant news or project announcement.
Current Whale Sentiments
According to data analysis, the whales have not taken any action on the current prices during the recent bear market. They seem to be hibernating.
BlockTrend Analyst Case Oliveira stated, “ Institutional movements, commonly called ‘whale activity,’ can be tracked based on the transaction volume moved over a short period of time, both denominated in BTC and USD.”
It can be very well concluded that retail investors or crypto investors should keep track of trading volumes to understand the market trends and make decisions accordingly.