Hi frens.
Typically Bitcoin whales decide to sell their assets based on multiple strategic decisions which are:
Market Sentiments and Resistance Levels
Whales closely watch market trends and key resistance levels. If they perceive that the leading crypto is struggling to break through a certain price point, they may try to sell to capitalize on potential profits before the downturn happens. Whales may sell, for example, if Bitcoin reaches a resistance level of $65,000 but loses momentum. This would be done to avoid losses from a possible decline.
Profit-Taking Strategies
Many Whales involve in profit-making strategies, especially after remarkable price surges. They may sell some of their Bitcoin holdings when price levels reach levels they think favorable allowing the Whales to realize the gains while maintaining a good portion of investment in Bitcoin.
Market Manipulation
Market manipulation tacts are employed by some Whales like creating "sell walls" placing large sell orders lower than existing market prices to induce panic sellings among smaller investors which can further push the prices down allowing the whales to buy back at lower levels.
Liquidity and Supply Management
Whales are aware of the market liquidity. By selling large quantities, they can increase supply in the market which may cause price decreases. Conversely, withdrawing assets from exchanges shows indicates a potential accumulation phase, signaling they might be preparing for future buying opportunities.
Sentiment and External Factors
Whales also consider broader market sentiment and external economic indicators. For example, whales may speed their selling to reduce the risks associated with downturns if there are indications of bearish sentiment or negative news affecting the cryptocurrency market.
Social Media and Community Signals
To gauge sentiment and influence the market, some whales actively engage with social media platforms. Keeping an eye on conversations and patterns can help determine whether to purchase or sell depending on collective investor behavior.
Image source: Coinmarketcap
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