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Question #259

How can large whale movements signal shifts in Bitcoin price trends?

Category: General
Whale movements directly cause Bitcoin network congestion leading to increased transaction fees
Substantial transfers by whales indicate upcoming price moves as they reveal accumulation or distribution
Large whale transfers show that miners are switching off equipment, reducing network hash rate

Why is this the correct answer?

This is correct because large-scale transfers often reflect either accumulation before a rally or distribution before a drop. Whales hold sizable positions, so their movements can signal market sentiment shifts. Beginners can monitor on-chain whale activity to anticipate possible trend changes as part of their analysis toolkit.

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