There are four main ways to monitor whale activity: order books, monitoring known whale addresses, sudden market capitalization changes, and trading on crypto exchanges.
Every so often, sudden price fluctuations in crypto and traditional markets are attributed to whales. It is important for investors in Bitcoin ( BTC) to be able to identify the differences between a whale and a whale, as well as their impact on trading.
Bitcoin whales are wallet addresses that have large amounts of BTC. The prices of Bitcoin can be negatively affected by large amounts being deposited or transferred from one wallet to the other. This results in losses for smaller traders. In this way, small-time traders can make profit in a volatile market by monitoring Bitcoin whales in real time.
Despite Bitcoin’s decentralized and global nature, monitoring and tracking whales boils down to having access to trading data from cryptocurrency exchanges and services. The main ways to monitor whale activity include order books, monitoring known whale addresses, sudden market changes, and trading on crypto exchanges.
Smaller investors can get a head start by monitoring whales, as it increases the likelihood of finding a whale trade. Additionally, it is possible to leverage volatility by keeping track of market changes through order books and trades on cryptocurrency exchanges.
Free services are also available to inform investors about successful whale trading. These include information about the sender and receiver wallets as well as the amount. Twitter’s @whale_alert is a popular service for tracking whale trades. It issues alerts about large transactions as shown above.
Cointelegraph recently revealed in a market update that on-chain data indicated that the largest bitcoin hodlers were hesitant to act at current prices. BlockTrends analyst Caue Oliira supported this finding by pointing out a “hibernation” continuing among whale wallets. He also added:
“Institutional movements” or more commonly referred to as “whale activity”, can be tracked using transaction volumes over a short time period. Both denominated USD and BTC.
Additionally, many altcoins continue following Bitcoin’s bearish trend as whales wait for a greener sentiment in the crypto market.