Question #380 ·
How can tracking whale accumulation help beginners gauge possible future price movements?
- Whale accumulation provides no insight because large traders influence Bitcoin markets
- Whale accumulation often precedes price rises, indicating potential bullish momentum ahead Right answer
- Whale accumulation always results in immediate price crashes due to selloffs
Why is this the correct answer?
This is correct because large holders, or whales, typically buy when they expect prices to go up. Tracking increases in whale wallets can therefore signal accumulation phases before broader market participants push prices higher. For beginners, observing on-chain data showing whale accumulation can help anticipate possible bullish moves rather than relying solely on price charts.