Question #259 ·
How can large whale movements signal shifts in Bitcoin price trends?
- 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 Right answer
- 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.