Question #229 ·
How do large whale movements and on-chain alerts help us understand Bitcoin volatility?
- Large whale movements signal selling pressure affecting Bitcoin price volatility Right answer
- Large whale movements only reflect mining activity not market sentiment
- On-chain alerts always predict long-term Bitcoin price increases daily reliably
Why is this the correct answer?
This is correct because when large holders move or sell coins, they can flood exchanges with supply and push prices down. On-chain alerts track these transfers and help traders anticipate sudden market shifts. For beginners, watching whale activity is crucial for gauging potential volatility since big transactions often precede spikes in selling or buying pressure.