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Question #213

How do big whale sales compare with small retail buying when Bitcoin prices drop?

Category: General
When prices drop whales and retail investors both stop trading entirely causing price to remain stagnant indefinitely
When prices drop whales sell volumes creating downward pressure and retail investors buy small amounts seeking value
Whale sales dips attract retail trades small investors interpret big sales as a signal to exit market
Whale sales have no impact on price drops while retail buying reverses downward movement of Bitcoin price

Why is this the correct answer?

Whales are large Bitcoin holders who may sell sizeable stakes during dips, which intensifies downward price pressure. In contrast, retail investors often see a price drop as a buying opportunity and purchase smaller amounts. Observing this dynamic helps beginners understand why price declines can accelerate when big holders sell and why the market may begin to stabilize as small investors step in to accumulate.

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