Classic Whale Strategies đ
âą Weak Market Manipulation: Altcoins often have lower trading volumes than Bitcoin, making them more susceptible to manipulation. A whale may sell a large amount of altcoins, causing panic among small investors, who fear a prolonged decline and sell as well. Once prices are sharply reduced, these same whales buy back at low cost.
âą Weak Position Clearing: This type of manipulation allows whales to eliminate stop-loss orders from small investors (often placed at strategic thresholds), allowing them to accumulate more tokens at reduced prices.
Clues suggesting this behavior
âą Sharp drops without major news: If the drop in altcoins occurs without significant news, it may indicate a speculative or manipulative move rather than a market reaction to fundamentals.
âą High trading volumes: Abnormally high volumes in a decline may reflect massive selling, often followed by substantial buying. This behavior is typical of whales.
âą History of market cycles: During or after a bull run, it is common for whales to seek to accumulate by causing local corrections. This has happened in the past, notably during the 2017-2018 cycle.
3. How to protect yourself?
âą Don't sell in panic: If your investments are based on solid fundamentals, avoid selling during speculative declines.
âą Use strategic stop-losses: Place your stop-loss orders below key areas and not at obvious psychological thresholds (like round numbers).
âą DCA (Dollar-Cost Averaging): Gradually strengthening your positions as prices fall can allow you to benefit from better prices while minimizing risks.
4. A more complex market
Itâs important to note that not all bearish moves are orchestrated by whales. Certain factors, such as changing interest rates, regulations, or overall market trends, can also trigger massive selloffs. However, the concentration of wealth in crypto makes these manipulations plausible under specific conditions.
May fate be favorable to you my friends #btc #altcycle #altsesaon #eth #doge
