Question #348 ·
What effect do mid-sized whale accumulations during price dips have on Bitcoin’s recovery potential?
- They indicate whales are losing interest and preparing to leave the market.
- They always cause price crashes by overwhelming the market with sell orders.
- They create buying pressure during dips, helping stabilize price and enabling a recovery. Right answer
Why is this the correct answer?
This is correct because when mid-sized whales accumulate assets at lower prices, they absorb selling pressure and establish a demand floor. Beginners can view this behavior as a sign that larger players expect prices to rebound, which can give smaller traders more confidence to buy.