The Most Useless On-Chain Metric - Whale Alerts đ
Yes, I fell for it too.
But now I know better: tracking single wallets is not analysis itâs noise.
Let me explain đ
What Does On-Chain Data Actually Show?
On-chain analysis comes in two flavors:
- Forensic (single wallet tracking)
- Behavioral (group-level patterns)
Example đ
âXYZ whale just moved 2,000 $BTC to an exchange!â
Sounds scary, right? But⌠is it actually meaningful?
Single Whales Can Manipulate
A whale sends #BTC to an exchange.
Everyone panics.
Price drops.
The whale buys back cheaper.
Classic bait.
Just because it looks like selling doesnât mean it is selling.
The Right Way - Follow the Herd
One wallet can lie.
But hundreds of wallets?
Thatâs hard to fake.
Track Groups Instead
⢠Whale cohorts
⢠HODLers
⢠Short-term traders
⢠Miners
⢠InstitutionsThese patterns tell the real story.
BOTTOM LINE đ
If you want to track whales, donât use a telescope use a satellite.
Donât zoom in. Zoom out. The market is a symphony.
If you only listen to one trumpet, youâll miss the whole performance.
Single wallet analysis has its uses (like hacks).
But for market trends? Practically useless.
Thank you for taking the time to read.
