How Realistic is the whalebot alert?

tbct_mt2

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Quote from: LostConfidence243 on December 01, 2020, 01:41:09 AM

"I am whalebot alert in TG I every day got many notifications about big transactions of many currencies. I heard a rumor of pricing increase and decrease related these transactions, is this realistic?

When you are trading or investing what you are observing would be price chart and for investment, it would be fundamental analyses. Pay your attention on telegram signal groups or whalebot alert groups is not a good idea. It only destroys your ability to have your own opinion on the market situation.

Big transactions, hype, signals force you to think different than your own opinion if you don't see those news and signals.

Quote

How deeply this transaction can impact the crypto market?"

Not much. Because those amount of bitcoin or cryptocurrency won't be sold out in a day, in a week. You will see those transactions when market is preparing to be dumped or pumped.

Yamifoud

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If a whale bot alert is helping it could be realistic but I'd never think it was which means that having this thing is simply causing people mostly to get panic and sell their coins. That is why whales remain influential to the market trend because many people are listening to them. If we can see that they transfer a huge chunk of their Bitcoin to another wallet address we also have to think that the market will dumps which is probably not a thing we have to see.

There is a big lie in whalebot that is why I'd never use it instead of spending time to analyze the market rather than relying on this.

winrate.io

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I think it helps a little bit to understand when to expect a lot of volatility, however, I think it's very difficult to determine which direction the price will go based on these transactions.

milewilda

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Quote from: LostConfidence243 on December 01, 2020, 01:41:09 AM

"I am whalebot alert in TG I every day got many notifications about big transactions of many currencies. I heard a rumor of pricing increase and decrease related these transactions, is this realistic?
How deeply this transaction can impact the crypto market?"

Not really that much yet you wouldnt know on where those transactions do end on neither those are just simply transfers from wallet to wallet or
making out some transfers to those exchange to make up some sell but you wouldnt know if those would be sell out in bulks or in gradual basis.
Its not bad to make some analyzation with this one or not but it would be better if you are much aware on these kind of transfers because its neither
the market will react on it or not.

posi

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Quote from: Bitcoin_Arena on December 01, 2020, 09:47:55 AM

I would say 50-50 or sometimes just a coincidence that the market starts to move right after a whale transaction. All in all, a whale transactions alert shouldn't be used as an indicator to predict market movements

Coincidence? No, things happened for a reason and trust i was able to predicted market dump several time through whales movement.

Quote from: Bitcoin_Arena on December 01, 2020, 09:47:55 AM

1. You can't tell exactly what time an order is going to be executed once BTC has been moved to an exchange's deposit address

That's correct but the movement serves as hints of a possible trend that may happen sooner or later.

Quote from: Bitcoin_Arena on December 01, 2020, 09:47:55 AM

2. It's hard to tell if Bitcoins are being deposited to an exchange's address, or they are just been moved from individual address A to Individual Address B

Whales alerts tell if the coin moved to an exchange wallet or an unknown wallet (which could be an individual address).

Quote from: Bitcoin_Arena on December 01, 2020, 09:47:55 AM

3. Sometimes exchanges move huge amounts of BTC from their cold wallets to hot wallets and this can trigger a whale alert without actually affecting the Bitcoin's market price.

As i said, it serves as a hint of what may happen.

bittick

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Might be a realistic sign of dumping if the transaction was sent to an exchange address but otherwise it's just whale moving out coin from one address to another. It's common practice for some people to always move the money so that the privkey not easily revealed/leaked or not many people trying to target or dox them.
In my opinion. Just don't really think deeply of it because 90% it's just normal occurence and won't have any impact to the market like at all.

XZERO1

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Quote from: LostConfidence243 on December 01, 2020, 01:41:09 AM

"I am whalebot alert in TG I every day got many notifications about big transactions of many currencies. I heard a rumor of pricing increase and decrease related these transactions, is this realistic?
How deeply this transaction can impact the crypto market?"

No, there's no guarantee that any of those big transfers to another wallet have any influence on the price, I'd say there is less than 5% chance that a big transaction lead to a significant increase or decrease of price of a token/coin.

Also don't forget that those that move that much coin/token between wallets know that their transactions are being watched by people like you so don't ever think they're going to let you be aware of their next move which could result in them selling lower or buying higher because other people like you sold or bought before them, also they can just as easily divide their single transaction into 10-20 parts and send them separately so that no one finds out and it stays under public's radar, so if they did not do that it could mean they're not going do anything special or they're just trying to mislead people into thinking they're about to sell a specific coin for example which could result in decrease in price when public sees that big transaction(to an exchange wallet for example) and that way they can just buy more of that coin cheaper.

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Quote from: LostConfidence243 on December 01, 2020, 01:41:09 AM

"I am whalebot alert in TG I every day got many notifications about big transactions of many currencies. I heard a rumor of pricing increase and decrease related these transactions, is this realistic?
How deeply this transaction can impact the crypto market?"

Of course the data source is real because they attach the bot to the platform system of many exchanges and since then when suddenly a large amount transaction occurs, the Bot will signal. I fully believe in WhalesAlert signals and such data can greatly help us in our buying or selling decisions.
Usually whales will print USDT or send USDT from unknow wallet to big exchanges to buy more coins. On the contrary, when they want to quote, they will move Bitcoin to the exchange and sell them, creating correction candles or bearish trend.

Lhaine

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It will only have big effect if the balance transfer in exchange and you see a large set orders on the exchange after transferring it there . If it's a wallet to wallettransfer I don't think we need to be bother much if there is no intention selling it . Don't forget that we don't really have idea how they use their money and there are many possible reason for transferring it to another wallet .

TryNinja

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Quote from: BrewMaster on December 01, 2020, 11:12:54 AM

in other words these "whale alert" groups, bots, ... are scammers.

People are really relativizing the word "scammer", huh? I don't even think they post anything else other than "XXX BTC moved from XXXX to XXXX", if that even matters. So no one is claiming anything. They show the activity and where the money is at and people think for themselves.

Quote from: Ucy on December 01, 2020, 11:54:16 AM

I wonder if speculation is the reason for this (the bolded part) or people moving their funds from centralized exchanges to hold (or both).

Less coins in the exchanges = less coins to dump. If you have 1000 BTC and isn't thinking about selling, you don't want to get caught in the middle of a new Mt Gox level hack or a Okex lockdown.

Ucy

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Quote from: TryNinja on December 01, 2020, 02:21:26 AM

Well, you can use the bot to understand the current state of inflows/outflows of the exchanges. If whales are depositing BTC, they may be thinking about selling them, which would drop the price. If they are taking BTC out of the exchanges, maybe they want to hold their coins in the short term. But neither of those cases is a clear indication of what is happening next. Those users can, for example, deposit and not sell their coins or they can just withdrawal and send it right to another exchange.

Take a look at CryptoQuant's charts. A great one is the Spot Exchanges Reserve chart, where you can see a clear correlation between lower reserves within the exchanges and higher prices.

Interesting.
I wonder if speculation is the reason for this (the bolded part) or people moving their funds from centralized exchanges to hold (or both).
My problem with the whale alert is that it can potentially be used to manipulate prices

sheenshane

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It's realistic for me but not a reliable source of information. Any whales movement would reflect and can give you notifications however, it's not giving sufficient information about the movement like if the purpose of depositing is to sell which would have a big impact on the Bitcoin's price, or withdrawing it just move it from one address to another one which has no big impact to the Bitcoin's price yet those who will get notified may be alarmed for such huge transaction.

IMO, it would be better if you won't rely on the whalebots solely like what @TryNinja mentioned above.

BrewMaster

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There is trouble abrewing

they are real in the sense that any big transaction they report with its transaction ID does exist in real world on the blockchain which you can see.
but it is a big lie claiming that these "big transactions" are affecting the price or if they claim that this is a "whale" moving their coins to exchanges to dump.

the only information that we have is the transaction itself, who made it and why is going to always remain unknown unless the person(s) moving those coins came out and told us the reason.
in other words these "whale alert" groups, bots, ... are scammers.

ryzaadit

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Not really realistic.

I take one of the examples, they only mark the address has been known. I have one discussion some post was really scared because of the big movement transaction, but guess what? that transaction from the exchange and the because the bots don't know the address because the address was new.

They mark the transaction from "Uknown Address", using this bot for one of the factor trading not really a good option.

Bitcoin_Arena

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I would say 50-50 or sometimes just a coincidence that the market starts to move right after a whale transaction. All in all, a whale transactions alert shouldn't be used as an indicator to predict market movements because;
1. You can't tell exactly what time an order is going to be executed once BTC has been moved to an exchange's deposit address
2. It's hard to tell if Bitcoins are being deposited to an exchange's address, or they are just been moved from individual address A to Individual Address B
3. Sometimes exchanges move huge amounts of BTC from their cold wallets to hot wallets and this can trigger a whale alert without actually affecting the Bitcoin's market price.

TryNinja

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Well, you can use the bot to understand the current state of inflows/outflows of the exchanges. If whales are depositing BTC, they may be thinking about selling them, which would drop the price. If they are taking BTC out of the exchanges, maybe they want to hold their coins in the short term. But neither of those cases is a clear indication of what is happening next. Those users can, for example, deposit and not sell their coins or they can just withdrawal and send it right to another exchange.

Take a look at CryptoQuant's charts. A great one is the Spot Exchanges Reserve chart, where you can see a clear correlation between lower reserves within the exchanges and higher prices.

LostConfidence243

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"I am whalebot alert in TG I every day got many notifications about big transactions of many currencies. I heard a rumor of pricing increase and decrease related these transactions, is this realistic?
How deeply this transaction can impact the crypto market?"

Topic: How Realistic is the whalebot alert? (Read 184 times)