- Bitcoin whales are basically people with the financial power to affect the price of Bitcoin.
- Whale watching is easy. There are four different ways you could do that.
- Watching known whale addresses, order books, rapid fluctuations in market capitalization, and transactions on exchanges.
Anyone who has the financial power and clout to affect the price of a cryptocurrency or stock in, mostly, a negative direction is considered a whale. Whales are big Bitcoin investors that create havoc in the seas where lesser fish frolic.
If smaller traders are able to track a whale, they may not only be able to ride along with it and profit alongside it, but they could be able to escape getting crushed by the whale or being left with losses.
Notwithstanding Bitcoin’s worldwide and decentralized character, tracking down and watching BTC whales is as easy as downloading widely accessible transaction data from cryptocurrency exchanges and services. This is the only thing that is required to do so.
There are primarily four methods to follow the activity of whales, which are as follows: Monitoring the addresses of cryptocurrency wallets, including those belonging to the biggest holders and those belonging to exchanges, as well as order books, in order to keep abreast of any substantial price movements in cryptocurrency.
If you suddenly see purchase orders that are much greater than usual, there may be a whale involved in the transaction. The same, of course, is true for sell orders that are much greater than typical.
Watching changes in the market capitalization of a specific cryptocurrency that is unrelated to any big project announcements or other news that might move the market is the third way, and monitoring trading on exchanges is the last.
