Cryptocurrency knowledge bite: How to track Bitcoin whales and what is Bitcoin whale watching?

Cryptocurrency knowledge bite: How to track Bitcoin whales and what is Bitcoin whale watching?

Monitoring known whale addresses, order books, abrupt changes in market capitalization, and trades on cryptocurrency exchanges are the four main techniques to keep tabs on whale activity.

Whales are occasionally blamed for abrupt price changes in both the crypto and traditional markets. Given their potential to manipulate market prices, it is crucial for regular Bitcoin (BTC) investors to comprehend the specifics of what defines a whale and how they affect trade as a whole.

Bitcoin whales are wallet addresses that have massive amounts of BTC in them. The prices are unfavourably impacted when big sums of BTC are dumped or transferred from one wallet to another, which causes losses for the smaller dealers. As a result, real-time tracking of Bitcoin whales enables day traders to make winning transactions in a volatile market.

Despite the global and decentralised nature of Bitcoin, finding and keeping track of whales only requires reviewing readily accessible transaction data from cryptocurrency exchanges and services. Monitoring known whale addresses, order books, abrupt changes in market capitalization, and trades on cryptocurrency exchanges are the four main techniques to keep tabs on whale activity.

As the likelihood of discovering a whale trade improves dramatically, monitoring known whales gives smaller investors an advantage. Additionally, monitoring market fluctuations through order books and trades on cryptocurrency exchanges reveals approaching whale trades, which can be leveraged to profit amid turbulence.

The cryptocurrency community also makes use of free services that alert investors about profitable whale trades, frequently with details on the wallet addresses of the sender and receiver and the transaction amount. On Twitter, @whale alert, which sends out alerts relating to significant transactions like illustrated above, is one of the most well-known platforms for automatically following whale trades.

The largest Bitcoin hodlers may be hesitant to act at the current levels, according to on-chain data, according to a recent market update from Cointelegraph. BlockTrends researcher Caue Oliveira cited a "hibernation" that is still going on among whale wallets to justify the aforementioned conclusion. The amount of transactions moved over a brief period of time, both in BTC and USD, can be used to follow institutional movements, sometimes known as "whale behaviour," he continued.

In addition, several altcoins are still following Bitcoin's bearish patterns as whales wait for the cryptocurrency market to turn around.