7 Ways Crypto Whales Manipulate the Market, You Must Know So You Don't Lose!

Bittime - Find out 7 ways crypto whales manipulate the market and how to avoid them so you don't lose money here! Must know in order to survive in the crypto market.  

The big players, or as they are often called whale (whales), have tremendous influence in determining market direction. Unfortunately, most retail traders, who are usually unaware of this manipulation, are trapped in a game that has been set up. 

In fact, around 90% of traders lose their savings because they get caught in the tactics implemented by crypto whales. However, that doesn't mean small traders can't survive or even win. 

The main key to avoiding this trap is to understand how whales manipulate the market and learn to avoid their tricks. This article will discuss the 7 main ways crypto whales use to manipulate the market and how you can protect yourself from losses.

1. Fake Patterns

Whales often create fake chart patterns to confuse retail traders. They may buy at resistance levels or sell when prices rebound, making traders think that the pattern shows the true direction of the market. 

Retail traders who are not careful can be tempted to follow this pattern, but it is just a trap.

Tip: Don't just rely on chart patterns without confirmation from other indicators or signals. Make sure there is confirmation before making a trading decision.

2. Stop-Loss Hunting

Whales know where traders usually place their stop-losses, usually at important price levels such as support or resistance. They then make a large trade that drives the price to reach that level, triggering the stop-loss and causing rapid price movement.

Tip: Avoid placing stop-losses at levels that are too obvious or easy to predict. Try placing stop-loss slightly above or below key levels to avoid this trap.

3. Range Manipulation

During the consolidation phase, whales will push prices down to force traders to exit with losses. Usually, after the price touches the upper or lower limit of the range several times, the price will reverse direction. This is a very common technique used to get retail traders to give up.

Tip: Beware of false breakouts and wait for confirmation before taking action. Don't rush to act when the price moves quickly outside the range.

Read also: These 4 Cryptos Are Targeted by Whales in Q4: XRP, SOL, JBOLT, and KAS

4. Fair Value Gaps (FVG)

Whales can create significant price gaps by buying or selling in large quantities. After the price jumps high, a correction usually occurs, giving whales the opportunity to re-enter at a lower price, while retail traders panic and exit their positions.

Tip: Be patient during pullbacks and avoid following surging prices. Wait for prices to return to more realistic levels before entering the market.

5. Stop Hunts

By breaking an important support or resistance level, whales can trigger existing stop orders, cause massive liquidations, and reverse the price direction. This is one very dangerous trick, as it can trigger a chain reaction and exacerbate price volatility.

Tip: Do not enter into a position around a critical level without confirming the direction of the breakout first. If the market has not confirmed the direction, it is best to postpone trading decisions.

6. Wash Trading (Fake Trading)

Whales can move prices artificially by moving assets between accounts they control. This creates the illusion of high trading volume and great demand, which can influence other traders to buy or sell at unrealistic prices.

Tip: Watch spreads and trading volumes closely to identify suspicious activity. Don't rush in following volumes that seem too high without proper analysis.

7. Spoofing with Market Orders (Cheating with Market Orders)

Whales often place large, unserious orders (spoof orders) to influence market direction. These orders are often canceled before execution, but are enough to attract the attention of trading bots or other traders, moving the price temporarily.

Tip: Use limit orders instead of market orders to avoid the impact of fake orders. Limit orders allow you to set more precise prices and avoid getting stuck in large orders that never get executed.

Read also: Crypto Whale Transfers 210 Million XRP

Method Avoid Whale Manipulation

To protect yourself from whale manipulation, here are some steps you can take:

• Avoid placing stop-loss at obvious levels.
• Wait for price action confirmation before entering a position.
• Make sure the support or resistance level is broken down before acting.
• Avoid chasing sudden price pumps or low volume trades.
• Monitor spreads and buying and selling volumes for suspicious patterns.
• Be patient, stick to your trading plan, and wait for the right opportunity.

Conclusion

Indeed, the crypto market is full of profit potential, but it is also filled with risks that can come from massive manipulation by whales. They have the power to manipulate the market and create sharp price movements, which can trap many traders. 

However, with the right knowledge and careful strategy, you can avoid these pitfalls and stay on the right track.

Remember, patience and preparation are the keys to surviving and making profits in crypto trading. Don't rush into making decisions, and always make sure to carry out thorough analysis before entering the market. 

This way, you can avoid losing money and still play smart in this challenging market.

Read also: Whale Crypto: What It Is and How to Know It

FAQ About Whale Crypto

What Is a Whale in Crypto?

Crypto whales are basically heavyweight players in the world of cryptocurrencies. These players, whether individuals, institutions, or entities, hold large amounts of cryptocurrency, enough to influence market prices.

Who Are the Biggest Crypto Whales?

Who is the richest Bitcoin billionaire? Some of the richest Bitcoin billionaires include Changing Zhao (CZ), Brian Armstrong, and Barry Dilbert - as well as possibly Satoshi Nakamoto (no one can prove the wallet is his!).

How to Spot Crypto Whales?

Large transactions: The most obvious sign of a whale is large transactions. 

Blockchain Explorer: Blockchain Explorer (e.g., Etherscan for Ethereum) allows you to search for wallet addresses or specific transactions.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

Binance Square, Whale Manipulations: How 90% of Traders Lose Their Savings & How You Can Avoid the Trap, accessed December 10, 2024.

Nuant, What is crypto whale tracking?, accessed December 10, 2024.

Author: Y