The Bitcoin market was pure luck in the last weeks game, even more than usual. The market has experienced dramatic jumps and slow sagging, and many just wait what happens.
Recent activities show, however: Greater buyer – often referred to as “whales” – are back on the market (Coin-Update.de reported). In General, it is assumed that those who buy such large quantities, could are likely to the market forces aware of, and thus the bottom will be reached.
The popular crypto-personality @crypto demedici points on Twitter to the fact that we experience may be just as whales go shopping – while we are close to the low point.
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He who has the Wal…
At the end of October, BTC saw a massive price jump with a three-day increase of over 1,500 $. Since this increase, the market has lost most of these gains. The latest price 7,500 $ per Coin – which is less than half of the Year-high.
As the end of 2018, many hope to identify a low point in the run-up to buy and to maximize the profits. The difficulty is, of course, to schedule this event, and with as little loss as possible factor to buy.
A big “whale”buyers are often an indicator that the market has reached a low point. Although this is not always true. However, something always happens when Walkäufer show up on the market.
A simple supply and demand account makes the market action to understand. When whales sell large amounts of Bitcoin, the market is generally more liquidity than it needs (offer increase). The result: the price goes down.
As the price drops, need to be closed a lot of Long positions, and the market will be further flooded, which often leads to dramatic losses in a short period of time.
On the other hand, the liquidity is reduced in volume greatly when whales buy on the market. In General, the market will then jump to the top. Even relatively small changes can cause a “Short Squeeze”, since Short positions of investors will need to be filled. This can in the short term, lead to dramatic gains.
Interesting way to create whale movements often demand that seem to represent you. When whales buy, gives the market’s attention. Many smaller investors are trying to go from FOMO (“Fear Of Missing Out”, the fear to miss something) in the market, which leads to artificial increases.
It remains to be seen whether the Walkäufer harbingers of better markets, or simply significant bad investors. However, Walkäufer are usually a Signal for short-term good times.