How Whales Manipulate Crypto Prices
“Whales” are traders or institutions holding huge amounts of crypto.
Common Whale Tricks
1. Fake Breakout
• Price breaks resistance
• Retail traders buy
• Whales suddenly sell heavily
• Price drops quickly
This traps traders in losing positions.
How to avoid it
• Wait for two candles to close above resistance before entering.
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2. Stop-Loss Hunting
Whales push price slightly below support to trigger stop losses.
Example:
• Support at $2,040
• Price quickly drops to $2,030
• Many traders get liquidated
• Price suddenly pumps back up
This is very common in futures markets.