First of all this is certainly no financial advice. These are just my observations and what I have learned so far in the crypto market.
It is obvious when a whale is manipulating a market when a buy or sell wall can be seen in the order book. But how can we take this to our advantage?
When a whale manipulates on the sell side, it is likely that they see a lot of potential in the coin. They want to keep the price down in order to buy more before the price peeks. Further more by manipulating this side, they dry out the supply of the coin from traders who are willing to go under their price. The people that are left above the wall are those who are not willing to lower their price.
Buy walls on the other hand will give people hope the coin will go up making the buy more coins from the whale. The price might spike for a period, but is likely to crash when the whale decides to drop their wall.
Of course these will not be set patterns, as it depends on the confidence of the other people for the coin that is being manipulated. If a whale sets a wall but the price goes down quickly after, it will probably take longer to recover.
Thank you for reading this and correct me where I am wrong, as I am in no sense an expert in this.
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Whales are keeping us down...
Whales are not always a bad thing. They can save a coin, but on the flip side they can also totally crash a coin. If bitcoin for example would fall too hard, the whales will most probably step in and take over the market to stop the crash, since they otherwise lose all their money.
On the other side, if they want to buy more coins, they totally crash the market to buy their coins really cheap since they know that the market will go up again after they leave the market.
So on one side whales keep us down, but on the other side we might need them sometimes.
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