2 Simple Ways Crypto Whales Manipulate the Market

[headingnorth]

2 Simple Ways Crypto Whales Manipulate the Market

May 30, 2018



What is a crypto whale? The term “whale” is something you may have heard at least a few times if you’re involved in the cryptocurrency community. A whale is typically a high net worth individual that puts a large amount of their funds into cryptocurrencies.

Their significant funds allow them to change the market trend in whatever direction they want. They can make it go up, down or trade sideways while they are loading up for the next pump. Let’s take a closer look and do some whale watching.

We will examine if there is a rhyme or reason to their manipulative behavior and tactics in the market. We will also examine what their tactics look like and how these tactics cause price gains and losses for the average trader.

Legend of “BearWhale”

The first notable whale incident with Bitcoin dates back to 2014. The infamous whale dubbed “BearWhale” decided to put up his entire position of 30,000 BTC up for sale. He later said he did this so he could capitalize on his investment gains and retire.

He put an order limit for 30,000 BTC in to be sold at $300. He realizes now he could’ve made more money if he would’ve worked on a better sell off strategy for his Bitcoin position. Instead of having a sound selloff strategy, he put up a massive wall with his large 30,000 BTC sell order.

This sell order caused a considerable stir in the Bitcoin community. Nearly everyone was worried that there was a larger conspiracy to lower the price of Bitcoin permanently. Everyone fought hard and successfully absorbed his entire sell order.

Price Suppression

In contrast to BearWhale, some other whales have since then created waves in some crypto-markets, with much more strategic motivations. They can control the price of coins because there is still a relatively low volume of traders in the crypto markets.

The more substantial and more frequent amounts money funneled into the market, the harder it will be for whales to manipulate the market as quickly as they are right now. They can suppress the price of coins in a pretty straightforward way.
Let’s say the whales know that an impactful announcement will come soon or they want to load up on a coin in a specific price range so they can have an even more significant position than they do right now. All they need to do is to put a massive sell order on the books that is lower than all of the other sell orders in the market.

This large order will force the other sellers to lower their price so they can sell their orders before the whale’s sell order. The whale can then further reduce the enormous sell order price forcing all of the other sellers to drop their selling price even lower than before.
These events then set off a bit of panic chain reaction in the market. The whale will then pull their large sell orders off of the market when they’ve created enough panic, and the price is where they wanted it to be so they can accumulate more coins at their desired price point. This tactic described above is known as a “sell wall.”

Price Pumping

If the whales want to artificially inflate the price of a cryptocurrency all they need to do is the opposite of a sell wall. They put huge buy orders on the market at higher prices than what is on the market. This buy order then forces bidders to raise the price of their bids so the sell orders fill their buy orders.

If executed correctly this can cause FOMO for smaller investors and drive up the price significantly. This pump tactic requires significant amounts of capital that aren’t required to pull off a sell wall successfully. So a group of whales need to do this together in order to execute this tactic successfully.

Conclusion

If you can learn to successfully whale watch, you will be able to trade the way they do and make higher returns. It’s also essential to “hodl” strong if they are trying to make the price drop. Otherwise, you will feed the whales your position at a discount and give them even more leverage in the future to manipulate the market further.

It is important to note that these tactics are illegal in the regulated stock market exchanges. As the cryptocurrency world faces more regulations as time goes on, It is safe to say that the whales will eventually lose their power to manipulate the market so readily and easily.




https://medium.com/formosa-financial/2-simple-ways-crypto-whales-manipulate-the-market-35ba10bc07f7

[Obito]

Just hodl and let the whales do their work, buy when you see that the prices are going down and sell when the prices are at an exorbitant amount, we don't have to master whale watching since the prices tells it all and no matter how much you avoid it, if you follow crypto related news, you will always be reminded with news.

[headingnorth]

If I was a whale I would pump the price up really good and hard  at a time when everyone is expecting the price to go down - this would make the short sellers shit their pants as well as reck the other whales and institutions who were trying to screw over the retail investors. HAHA then I would have a good laugh. F*ck them!

[sensimilia]

cmon, they are a whales, they do not need any tricks to manipualte the market. Buy and sell buttons are enough

[OcTradism]

Whales have big capital in BTC and in fiat or stable coins. They create big sell or buy walls to control the market. They draw a chart for you to see how it looks perfect in wave, pattern, fractal. All are their traps but you can not smart and experienced enough to verify what they do are real and what are faked, traps.

If you love Bitcoin, believe in Bitcoin and want to be a millionaire, buy as much Bitcoin as you can and hodl. Let's whales do their plans then you will see your job is very easy.

[headingnorth]

I just put in a bitcoin sell order with limit price of 1 billion dollars HAHA.

If all of us did the same thing I think that could defeat the whale's sell wall? Let's all do it now! 

[Kittygalore]

Often their tactics don't work, and the crypto community ignores the whales, doesn't it?

It doesn't really matter to them because either way they still make a lot of money and I am thankful for them because they are flushing out weal handed investors by causing a big wave resulting in panic selling.

[Lakai01]

Coinbureau, one of the best Youtubers in my opinion, published a very good video on price manipulation in the crypto market just yesterday:

https://youtu.be/ltcnTTeDFjY

In it, he also gives tips on how to recognize the manipulations and counteract them or use them to your advantage. Can only recommend the video!

[Lordhermes]

Keeping eyes on the strategy of whales is really the hardest tasks I have ever seen, it's really annoying and stressful doing such tasks, as long as coin price rises and falls, that is enough for me to remain a crypto enthusiast because price fluctuation is affected by demand and supply., Any assets that doesn't constitute demand and supply theory, stay away from it., whales are one of the factors that affect the market positively and negatively.

The problem a trader has is that, some doesn't know the type of trader they are, either day to day, weekly, monthly or yearly trader, if you know the type you are, you won't be worried about whales effect, a day trader must be aware of whales behavior, long term trader will never think about whale's effect.

[zanezane]

Coinbureau, one of the best Youtubers in my opinion, published a very good video on price manipulation in the crypto market just yesterday:

https://youtu.be/ltcnTTeDFjY

In it, he also gives tips on how to recognize the manipulations and counteract them or use them to your advantage. Can only recommend the video!

This is the kind of video that a lot of people should be seeing, I don't know this Youtuber but this kind of tips can help someone big time especially with manipulations happening in the market without being monitored, my message to everyone is to check out this video because it can help you make those manipulations work to your advantage.

[Jawhead999]

It is important to note that these tactics are illegal in the regulated stock market exchanges. As the cryptocurrency world faces more regulations as time goes on, It is safe to say that the whales will eventually lose their power to manipulate the market so readily and easily.

What's the unique and difference both of stock exchanges and cryptocurrency exchanges if cryptocurrency exchanges will be more regulated? It's will make less decentralization and it's not what's people want it.

Those 2 ways you mentioned above is only about buy and sell order, IMO FOMO and FUD is a major play in this space not from whales. I don't really care when I saw big amount order, I just do what I want to do. Just like the last FUD when China ban Bitcoin (again) people were do panic selling.

[Maslate]

Well, all I can do is to watch these whales manipulating the market because the real thing is that, they are also doing their best to make profits while some of these investors are just riding on it. And besides, we are also benefiting the market once they pump the price and it is up to us how to escaped when dumps had come.
As these manipulations had no regulations, we can never stop them. Whales doing their own and we do ours as well. I don't know if we have the right to get their attention as we can deny that they are a potential market player.

[Theb]

It is important to note that these tactics are illegal in the regulated stock market exchanges. As the cryptocurrency world faces more regulations as time goes on, It is safe to say that the whales will eventually lose their power to manipulate the market so readily and easily.

It's not illegal though market manipulation with short selling as well as going long and taking advantage of both buy and sell orders with their money is something within the boundaries of what an investor can do that is why the SEC has setup things such as trading halt and market halts to minimize the damage of what FUD and FOMO can do to the market. What is illegal though is insider trading as well as market manipulation by spreading false information similar to a pump and dump group, whales taking advantage of the market with only their money is something that is out of their hands considering that their capital alone has enough to influence the market they are on.

[pawanjain]

The best thing to do here would be HODL. A simple HODL startegy beats all these pumps and dumps and gives out more profits than trading in the long term.
Yes, sometimes the short term profits can give us good gains as well but many times we lose the gains on the long term.
Whereas simply holding for long term gives us a life of our own and good enough profits on our investments.

[DoublerHunter]

The best thing to do here would be HODL. A simple HODL startegy beats all these pumps and dumps and gives out more profits than trading in the long term.
Yes, sometimes the short term profits can give us good gains as well but many times we lose the gains on the long term.
Whereas simply holding for long term gives us a life of our own and good enough profits on our investments.

^ If you know how this BTC price will move, you will rather choose to HODL than selling it at a low price.
OP was definitely right, those are the movement of whales after they will pump the market, they will execute sell an option at a higher price and then creating a FUD that everyone will sell their BTC. It will react to all of those weak hands and will probably do a panic selling. At this point, they had a chance to buy back and make good news again. That is how they simply manipulate the market.

[Johnyz]

Coinbureau, one of the best Youtubers in my opinion, published a very good video on price manipulation in the crypto market just yesterday:

https://youtu.be/ltcnTTeDFjY

In it, he also gives tips on how to recognize the manipulations and counteract them or use them to your advantage. Can only recommend the video!

A million subscribers means a lot to me and thanks for sharing his channel now I’ll also watch his previous videos.
Anyway, manipulators will always act accordingly and if one whales started to make a huge selling pressure, some whales will back up that actions and that’s the start of the price. We must really know when to follow the whales actions and understand the importance of volume in the trade that could give you a sign on when to buy and sell. Don’t sell on panic, that could add up to the stress in the market and you might miss the chance of selling on a higher price again.

[Distinctin]

Conclusion

If you can learn to successfully whale watch, you will be able to trade the way they do and make higher returns. It’s also essential to “hodl” strong if they are trying to make the price drop. Otherwise, you will feed the whales your position at a discount and give them even more leverage in the future to manipulate the market further.

HOLDing might sometimes be essential in some other way but I can't tell that not all the time we need to do this. Whales manipulation can be fatal to you, if we are not checking the market regularly that will surprise us that one day our investment become zero in value. So the thing we should have to do is to watch closely what they do, we never know what will be their next plan so it was much better to anticipate them first before it hooks you up.

[nelson4lov]

In any market, there would always be big players and smaller ones. It's up to the small to medium sized traders to decide what they want to do. But ultimately, the goal should be to hold regardless of where the market's direction is out. Based on my experience, using some whale tracker or bot won't help in situations like this. For me, I keep out the whale noise and focus on what the market is telling me.

The best thing to do here would be HODL. A simple HODL startegy beats all these pumps and dumps and gives out more profits than trading in the long term.
Yes, sometimes the short term profits can give us good gains as well but many times we lose the gains on the long term.
Whereas simply holding for long term gives us a life of our own and good enough profits on our investments.

True that. It's only someone who hasn't gone through several market circles that wouldn't hesitate to panic sell when it all comes crashing to the ground level.

[crzy]

Whales will always play here in the market because they are the one who has the power to manipulate and we cannot blame them since we all want to make money same thing with them. Bette to think on how to ride with the whales and make money with then at the same time, we know its possible so start learning now and enjoy the market with the whales.

[poodle63]

Did you see the market price chart that resembles wyckoff distribution? some youtuber i followed actually pointed out that there's certainly manipulation going on
and it could be the institutional investors that are playing by their own set of rules taking advantage of the masses, it's crazy actually how the resemblance literally
looks alike making it hard to believe that it's not manipulated. But despite of that many people actually think that BTC definitely could hit $200K in the future
but that's merely a speculation, however if it could hit that high then I'm definitely all in.

Coinbureau, one of the best Youtubers in my opinion, published a very good video on price manipulation in the crypto market just yesterday:

https://youtu.be/ltcnTTeDFjY

In it, he also gives tips on how to recognize the manipulations and counteract them or use them to your advantage. Can only recommend the video!

Exactly this, I just figured this video out of yt recommendation and it actually blows my mind.