Bitcoin Forum

Hello guys,

When I see a Whale Alert on twitter, the replies following a given alert looks like going on the opposite direction of what I am interpreting on that alert.

For example, I see an alert like:

"🚨 500 BTC transferred from unknown wallet to Coinbase"

My interpretation of this, is that this whale is expecting the price to go up, so its moving a part of their BTC into an exchange to start trading leveraging that capital.

But, the comments I read on the style "game over" or "time to move to ETH" suggest the opposite.

How do you guys read the Whale Alert tweets?

Thanks!

Whales use wallets to hold, noncustodial wallets preferably,  hardware and other offline wallets most preferably, while moving bitcoin from wallet to exchanges is indicating a bear market because the whales are moving bitcoin to exchanges to sell.

But, if whales are moving bitcoin from exchanges into wallet, it means they want to hold, and a sign bull market will soon begin.

My advice is don't follow the noise of even based your trade because of it as it can be interpreted in a lot of ways. 500 Bitcoin transferred to Coinbase can mean a lot of ways not only through selling, also I doubt whales do their major sale on a cryptocurrency exchange but most of them will most likely use OTC desk as it is more secure for them to have a matching order on the price they want. Flooding the market with their sell orders would just force them to also sell down as well. So if I were you I would not look into these kinds of information as the influence it can give is sometimes coming from who are interpreting it.

Whenever funds are moved from a non-custodial wallet to an exchange (similar to the one you posted), then it usually signifies that a whale has moved their funds to an exchange to trade it aka sell it off which might move the market downward depend on the volume he/she is offloading. It's also called an inflow. Then when it's the other way round - whales withdrawing funds from exchange accounts to personal wallets, signifies an outflow which further means that they've accumulated the much they can and are now holding their stash.

I'd like to point out that you shouldn't rely too much on those whale alerts as they're often not accurate so it's best to just use them for information purposes only and not let them contribute to your trade bias.

I always consider it as a double-edged sword and that's there is no perfect representation of what it can be in both scenarios. I often not follow such kinds of alerts as that will just keep you skeptical and doubtful on your trading journey. This moving of crypto balance will never and always be that accurate in terms if it will be pumped or not.

One of the common indication or signs where most people been eyeing off when it comes to those pulling and putting big funds on the market.It can really be spotted out and thats why

some would really be finding out this indication towards their trading analysis on the market but doesnt mean that it is precise for them to follow it out because its neither those whales
are just making those casual transfers but not actually selling or holding.

but what as Charles-tim said then this is the way on reading up those whale alerts.

Put yourself in a whale's shoes. Why else would you move funds from a wallet address to an exchange if not to sell off/cash out?

Even if the Bitcoins were just moved to an exchange for trading purposes. A 500 or 1000 BTC sell order would cause a mini crash in the market which could trigger stop losses set by other traders leading to further price drops. So it would be sensible enough to expect a price drop whenever a whale moves funds from an unknown address to an exchange.

They are moving funds for some reason and if there’s a huge money coming into a specific project then you can expect a big pump, but you also have to remember that a whales come into that project, any time they can sell as well so its too risky to just depend on this signal. Usually, i don’t focus on this kind of signal I just need to see the price movement, and that’s my basis of buying.

Don't be affected by most comments. It's everywhere to see such comments that's saying those sentiments.

I just don't care anymore whenever there are big moves of whales if they're transferring it from their long-time wallet to an exchange. It doesn't matter much for holders.

But for traders, this matters a lot because such news is always making the market affected with a glance.

I guess comments was meant to mislead, or people who were not able to totally understand why whales did what they did.

It's simple, that whale for sure doesn’t only have Bitcoin as their investment.  Besides, they might also need funds at any moment and they can always get chunks of their Bitcoins and doesn’t always mean that they are trying to make a move. But mostly, if they did transfer to the unknown wallet, most probably they would sell. In opposite, they’d like to keep.

Don't bother yourself thinking those whales alert, it might just a trick of them, just focus on the news of Bitcoin acceptance and adoption, they might have an effect on the bull trend.

What do you get from this alert?

It is a big transaction on bitcoin network. How that 500 BTC will be used in the future (near or far)? Sell on Coinbase? Or to move back to unknown wallet not on Coinbase or any exchanges? Or it is simply a transaction for news?

A same 500 BTC transaction can give you different thoughts in different market. When the market is falling, you will think it is a transaction to cut off loss or to dump price of  BTC. When the market is rising, you will think it is a transaction to take profit. Price can be stable or rise higher.

Let assume I'm a whale (which hopefully I'll be someday) Since I know my wallet or all large transaction are been closely monitored, there could be various reasons why I'll move such large amount of funds. Just to clear the air, the alert didn't indicate where the funds was moving to so could be I'm just changing wallet knowing this could be interpreted as a move by whales to sell before then I already have my buy order in price to buy the coins off anyone would will fud and sell to minimize the potential loss they'll be expecting from a market crash.

They're many reason large amount of funds are moved, could be just for attention, or for more security reasons and something just to play with the market. I don't think whales on purpose will crash a market they instead selling instead they'll manipulate the market to buy the dip and probably sell OTC where the market won't react negatively giving them lesser equivalent funds.

Important unsaid rule in crypto trading - You dont read alert tweets, you ignore them.

Whales or "so-called" whales often post such tweets, but their intent in to generate panic in the market. Always remember that nobody on the internet does anything for free or for goodwill gestures, there is some motive behind it.

In crypto this is very specific because a market movement as to liquidation of assets from a "hidden" wallet means that market will crash so that people buy the currency - that is the mistake the people running this manipulation want you to commit, so they can sell their holding and profit from your loss.

In general if you ignore these type of tweets, you will be safe. Try to use the currency movement in the market to advantage, not the stuff posted on shill breeding grounds like twitter and reddit<these social media are the online cancers.

The more whales move coins to exchanges, the more I consider this a sign of a coming bear market.  When price climbs the highest, the first will cash out and typically it's these guys who are long in and have the highest profit.  They are selling to the people coming late to the party and if less and less people coming in, price will decline.

Your interpretation is wrong because for starters you have no way of knowing that it was a "whale" that transferred those coins to Coinbase. It may have been Coinbase itself that moved coins from one address to another address. Not to mention that most of the times what these shitty "alert" sites call "moved to Coinbase" is baseless claims, they just see a big transaction and that's all. It may not even be to an exchange, it may be from some random address to another random address.
They call it "whale" because they are desperate for followers.

Those are FUDs and trolls and some shitcoin advertisers that are desperate since their shitcoin bags have been losing value for the past 4 years.

You shouldn't waste your time because it is worthless information as I explained above.

I don't really rely on these signals on twitter or telegram. It is just scaring you to panic sell your holdings. If you have proper risk management, you won't be afraid of this. Don't go all in buying a particular crypto, leave some stablecoins so you can do dollar-cost-averaging when the price dumps. Those whale alerts won't help you to gain profit in trading. Learning technical and fundamental analysis is still better to learn if you want to be good at trading.

Just don't believe anything, even if some wallets were to start moving a lot of coins to another wallet/exchange. They just mostly notify you of big transactions, but that's it. A big transaction does not equate to a huge movement of the market, it's just like any other transaction out there. It isn't really something necessary when reading the market, I'd rather read the candles and see how I can short trade for a few hours. Imo, it'd probably be a lot better to just react to the market movement the instant it does something, you may be late, but not that much, compared to believing in a "whale alert" which could probably make you lose your entire portfolio.

The logic is simple (based on my own experience).

BULLISH ALERTS
If whales transferred any coin from either unknown wallet or exchanges onto wallet.
If whales transferred huge USDT to exchanges

BEARISH ALERTS
If whales transferred any coin from wallet to exchanges

Those were just my speculation and I don't really end up getting 100% right on my predictions yet it is definitely worth to note.

Thank you guys, I have a more clear idea now.
Anyways, I can't imagine a real whale transferring to an exchange 1000 BTC. I guess whales will always use OTC for moving funds to and from Exchanges.

If you are going to trade based on whale alerts then most likely your portfolio will reduce. Any whales would move funds for any reason. Moving a big amount of funds doesn't mean they will invest in specific coins. Who knows if the exchange themselves move the funds? Honestly, I have seen a few such as whales alerts but don't see any influence on the market based on it. You have to learn how you may take profits from the market. The most important thing in trading is experience, so grow your experience and research the market.

I have been seeing these kinds of things for years now and I never really assumed anything. Until I got more interested in defi, in bitcoin you do not know what is going to happen because whales could be doing anything, but in defi there is a method and it works almost all the time. How? Well there are things called "waterfalls" and those are basically the movements of that coin, in defi you "lock" coins and that gives you some profits, whenever there is a whale that doesn't lock any of their money and just unlocks it, that usually means they are getting ready for something and they will usually sell.

I have a friend who checked that constantly, and whenever a whale unlocked he sold before they sold, so he ended up selling at higher price and when the whale sold he bought back from cheaper. That way he increased his 13 tokens into as much as 37 tokens, he lost some back and has 27 now, but that was still good increase.

How can you make up your mind with this small news? 500 bitcoin is not a big number and it can easily be wiped out in any big exchange. The current bitcoin volume on Binance is 175,594.455 so I consider this amount of bitcoin has no magnificent impact to the market. That is how my interpretation says as a experience trader.

Trading with news or fundamental analysis is good. But, it is important to understand the mechanic on how to implement the news into good information and then, you can correctly calculate the next move of the market. In order to do so, learning fundamental knowledge is necessary, such as Behavioral Economics, trading skills, Economy, etc

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Frankly, Im not a fan of "news trading" . Prefer making decision with candles, trends and volume. They are the most transparent thing you can see and understand what behind forces driving the market in insanely. The only man I follow is Elon Musk because I cant deny his large footprints whenever he makes a crypto-related tweet

As for me, this is a common manipulation and you are unlikely to be 100% able to determine what this or that message was for. As you correctly noted, very often such messages are accompanied by back comments, and this is probably also part of the manipulation. The task is not to let you and me understand what exactly will happen, thereby confusing and making money on you and me. It is because of this that I began to believe with great caution in such statements and comments and I try to analyze the situation on the market more and draw my own conclusions.

In my opinion, whales moving their Bitcoin into exchanges is a bad sign, let alone moving large amounts of Bitcoin. It is very likely that the whales
will sell their Bitcoin, this is a warning for us to be careful if there are whales moving Bitcoin to exchanges. Since it is very rare for whales to send
Bitcoin to exchanges for trading, most whales choose to hold Bitcoin for the long term.

You should have to join their group, that only be the way to know what they are doing and what their plan. But I don't see any reason why we should have to do that or else, we wanted to fall into their traps and lose our money. Have we liked it to happen? not for sure. So, I could suggest to you is to stop chasing them, they will never help you but instead, they only make you as prey and get your money from sending wrong trading signals.

Sometimes whale alerts usually occur when the movement is already there or when it has already passed, the best alert you can see from the whales is within the Exchange that you are operating, if you know how to read the volume you will get this type of information if you know how to find it When whales enter the Exchanges, some give clues, since they place many purchase orders and do it en masse, now it is more difficult to detect since many use some bots with artificial intelligence, but the volume is an indicator that cannot lie to you. This despite the fact that the volume in general is not consolidated.

The bitcoins transferred to Coinbase is because they should be preparing for this April 14, there is a lot of speculation about Bitcoin on Wall Street.The movement now of ETH is different, it is above Netflix and some other platforms, but I think that it is still too early to speculate about it due to the history and dependence of ETH on Bitcoin, Bitcoin really is the one that has life own.

When we see the alerts on twitter it can become a double-edged sword, because they can intuit that everyone is going to buy because the whales want to sell, this is a market strategy, many call this movement "manipulation" but I see this as a normal and strategic movement of whales, this is very new today, because social networks are used to provoke that type of emotions, that is what Richard Wyckoff talks about in his books.

There are some whale alerts that are posted sometimes in twitter and telegram some of those are legit and some are fraud. Knowing whale alerts would be helpfulnand profitable to traders. If you know the whale to stop and buy you may gain bigger profit if you know the flow of a specific altcoin. Just join telegram whalees group alert so that it may help you in your trading life.

you think the price will go up ? but others think the price will fall down because a whale is trying to sell .
its hard to tell if who is correct because the price can move randomly but dont mind them but mind your own business because you know if whats good for you .
 it was your money not theirs .

I see this alert as a liquidation and maybe some part of that BTC can be use for trading which I doubt since whales are not trading that much, they are just buying and holding for sometime and then they'll sell it, whales are not a day trader and leveraging might not be the option for them. 

I mostly got informed about the whales actions thru telegram, I just ignore those alert most of the time because I don't know what whales will do with that money so I'd rather not overthink because it can cause stress.

I think you partially are correct OP. There are what you called whales will do the opposite to gain of course. However not all, there's also do what they have posted. I remember one who also posted a screenshot of what he bought.

I feel like both sides could be writing in the short term but not in the long term. If you are talking about short term bitcoin could go down and it could go up, both of them are quite right and possible. However one thing is quite guaranteed, bitcoin will go up in the long term, can you tell me that in 10 years bitcoin will not be over 60k already?

I am 99.99% sure that in 10 years we are going to see bitcoin way more than what it is today and that is why I am not really caring about the short term falls, if I buy from this price, I know that I will be richer in the long run, it could be richer in a year, it could be richer in 5 years or maybe 10 years but it will definitely happen. This is why I feel like some people will get richer from this but if they are capable of waiting, if they do not wait and sell on the first drop they will just lose money when they could.

Such information will just make you rulled, I mean, this has happened to my trade a few years ago. Indeed, I always make whale alert from telegram group as a banchmark to buy and sell to my trade or let say it is always used as a reference for my overall strategy.

But, yeah it was wrong I'm often stuck making a decision. Moreover at that time I choose trading future that use high leverage in order to get high profit. However, I never get a profit from this strategy I just lossing my money day by day and I decided to leave the group and trade by technical analyst and fundamental analyst based on news.

And that decision has made me change and teaches me many lessons, especially I am always required to read information about crypto currency in various media such as cointelegraph, investing.com and several other media. This makes me develop and have a little broad knowledge and this is useful for me.

And that's how manipulation works from the whales. They can easily fake their actions as if they're really about to sell but just moved it to that exchange for them to make something for the market to move it the way they like it such as pushing it down.

But it is true that it's very hard to tell what shall be next with those actions. In my experience, a few years ago they matter a lot. And everyone rides those FUD that when a whale transfers, the everyone sells but just as today when someone sends a huge amount to an exchange, everybody awaits for it to plunge to buy those sold bitcoins.

Unless you want to be giving yourself unnecessary stress. There are many meaning to all of this and since you are not actually the one holding or making the transfer, you will continue guessing. As good as whale alert pages on twitter are, I have discover your expectation is not happening particularly when you are expecting a bull run due to some huge USDT being transferred or minted

We think that hypes are made by whales, so keep the lookout on the market trend as that only be our basis. You can't hear them telling that, and I really sure that they don't want other people to know their plans. So, your only option OP is to monitor the market activities. But I believe you won't able to catch them. What you gonna do now and might others are also practicing this thing to choose coins that are potentially profitable and have a huge trading volume. Not just following the whales as that might catch you then, somehow.

The market is not fully influenced by the whales, we don't really care about warning the whales where they will create hype or other bad news, they only show big transactions and that's not necessarily done by them, just recap where they always take advantage of the opportunities that exist.
We still will not know the whale's plan, we are looking at the market with the current trend where the whales cannot do what they are, only the news of the FUD can spread.
Even I wouldn't be influenced by the pope even if I wanted to know their warning.

They have the influence and that is easy for them to make sich fake volume just to catch greedy souls on their trap. Those who are chasing the whale's actions are those people who wanted to make money easily which I think that also be the reason cause them to fail and lose their money.
If we are just able to know their plans(which is not), I can't imagine myself how much I gain from following them but unfortunately, we don't and that was hopeless to keep chasing them.

It's simple to understand to me. Here is some example hope you will be helped and can understand from now.

1. Big amount of BTC transferred from External wallet to Any exchange means there is a possibility of dump because maybe the whale want to sell those BTC.
2. Big amount of BTC transferred from Exchange to Any external wallet means it's positive news for bitcoin. Because maybe the whale transfer the btc to private wallet for HOLDING.
3. Big amount of USDT transfer from unknown wallet to exchange means the whale want to buy btc. this also positive for bitcoin.
4. Big amount of assets transferred from unknown wallet to unknown wallet - It's normal to me.

Although the trading market works on news, it is not always true. Whales move money from wallets to exchanges sometimes just fool small investors, or they simply want to convert their investments.
So don't be too alarmed to see such deals.