Trading cryptocurrency is like an ocean, where small fish and huge whales swim. Whales are large players who control huge volumes of assets and often influence market movements. By understanding how they act, you can use their strategies to your advantage. In this article, we will explore how to read volumes and follow large players to profit.
Who are whales?
Whales are investors or companies that own large volumes of cryptocurrency. For example, if a person has 1000 $BTC , any movement — buying or selling — can significantly impact the market.
Whales do not act chaotically. They have strategies aimed at buying cheaper and selling higher. Your task is to "notice" their movements and join them in time.
Why are volumes important?
Volumes show how much cryptocurrency has been bought or sold over a certain period. This is an indicator of market activity. High volumes may indicate the presence of whales.
Example: if the volume suddenly increases on the chart but the price remains almost unchanged, this may mean that someone large is accumulating assets to avoid raising the price.
How to read volumes:
1. Watch for anomalous spikes
If the volume has sharply increased, it is a signal that something important is happening in the market. For example:
The price rises with high volume — whales are buying, the price may continue to rise.
-The price falls with high volume — whales may be selling.
2. Look at the OBV (On-Balance Volume) indicator
OBV helps to understand who is currently dominating the market — buyers or sellers. If OBV is rising, it means that buying (likely from large players) is prevailing in the market.
3. Analyze the order book
Large buy or sell orders are visible in the order book. If you notice a large number of purchases at close prices, it may be a "demand wall" from a whale looking to buy assets at a low price.
Strategies for profiting from whales:
1. Join their purchases
If you see that volumes are rising while the price is just starting to increase, join the purchases. It’s likely that whales have not finished accumulating the asset, and the price will continue to rise.
2. Don't panic during sharp sell-offs
Whales often use manipulation strategies to shake off weak players. They can sharply drop assets to lower the price and buy back cheaper. This is called "shaking out."
3. Use divergences
If the asset price is rising but volumes are falling, it may be a signal that the rise will soon end. Whales are not supporting the trend, and it’s worth considering exiting the trade.
Example: how it works
Imagine the price $BTC is fluctuating around $95,000. At some point, volumes start to increase, but the price remains stable. This may mean that whales are accumulating Bitcoin. You enter the market and buy. After a few days, the price rises to $100,000 — large players have completed their purchases and started pushing the price up.
What to pay attention to:
1. Don't confuse noise with whale actions.
Sometimes volumes may rise due to news or small traders. Check if there is a clear trend.
2. Consider liquidity.
Whales prefer markets with high liquidity, where their actions are not too noticeable. For example, $BTC or #ETH .
3. Don't follow blindly.
Volume analysis is just part of the picture. Incorporate technical analysis and news to avoid falling into traps.
Whales dictate the rules in the market, but that doesn’t mean you can’t take advantage of their strategies. Watch the volumes, study the behavior of large players, and join their movements. The main thing is to act thoughtfully and not forget about the risks.
Monitor the market, be attentive, and may success be on your side!
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