Brothers, let me explain the logic of the whales. If the coin you bought has been in a continuous downtrend for several months and suddenly there's a big bullish candle at the bottom, remember this: do not chase the rise, do not chase the rise. Many people think, finally, it's time for me to buy the dip, and they go all in, only to find out they've bought at the halfway point! Let me explain why you shouldn't buy the dip when a big bullish candle appears and what might happen. First, the first scenario is a bullish signal. If the whale is preparing to pump the price at this position, they generally won't consecutively pull several big bullish candles. Even if they do create a bullish candle, there will usually be a pullback. The reason the whale creates a bullish candle at this position is either that it has reached their cost price level or they can't acquire low-priced chips. They need to pump the price to allow those who were previously trapped to sell, so they can acquire more low-priced chips. Now think about it, if the price is pumped a bit and you've been trapped for several months, would you sell? Obviously, many people will sell to break even, and at this moment, the coin price will inevitably drop. The whale also cannot defend the price at this position. For the whale, they need low-priced chips. This is why a big bullish candle at the bottom is likely to pull back, usually more than 50% of the highest price, so at this moment, do not chase the rise.
The second scenario is to bait and sell. If the whale hasn't sold all their goods or the selling price is too low, the whale will bait the market by pumping the price, allowing those who chase rises and panic sell to enter and take the bait.
So under what circumstances can you buy the dip? If a coin is in a rapid decline and during this decline, there is a super large volume at the bottom, and it quickly rebounds within 15-30 minutes, creating a spike candle, then this is a situation where you can confidently buy the dip. Why? The super large volume at the bottom during the decline indicates that the whale is accumulating at this position because retail investors are too scared to buy during a rapid decline and only want to sell. Only the whale will be buying at this position. So why the quick rebound in 15-30 minutes? Because the whale wants to acquire chips and does not want to share the low-priced chips with retail investors, so they must quickly pull back. This is the logic of buying the dip. I hope this is helpful to you!
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.
