Bear Whales

A whale is an individual, a business, a cryptocurrency exchange, or even an institution with sizeable holdings of a particular cryptocurrency, who often also has a significant amount of capital invested in the cryptocurrency market as a whole.

Bear Whales use their capital “size” to drive down cryptocurrency prices in hopes of profiting from the price decline.

Whales can place and remove sell walls on a CEX’s order book continuously, manipulating other traders to sell off their assets early because they see the sell wall.

This action could drive down both demand and price, and they (the other traders) want to get out before that happens.

Whales use sell walls to bluff other traders into putting their sell orders below the sell wall, causing price to move down.

Related Terms

Whale

A currency trader or large investor with sizeable holdings of a particular cryptocurrency, who often also has a significant amount of capital invested in the cryptocurrency market as a whole and elsewhere. Whales can be individuals, single businesses, cryptocurrency exchanges, or even institutions.

Buy Wall

Buy Walls occur on exchanges when a massive buy order or combination of several large buy orders that all have the same price in the order book for a specific cryptocurrency. The existence of buy walls has the effect of driving prices up even before it’s filled because a cryptocurrency’s supply will go down considerably once price hits the buy wall and orders are filled.

Bull

A bull is a trader or investor that believes the price of an asset or market will increase for a prolonged period of time

Bear Market

A Bear Market describes a cryptocurrency market where declining prices are the trend. Prices decline for a prolonged period and investors and traders believe that prices will continue to do the same. Trader confidence is low in that prices will maintain or increase.

Bear Trap

A Bear Trap is a trading manipulation technique used by a group of traders or a large whale, where large amounts of a currency are sold at the same time, breaking local price supports. The manipulators, by dumping their holdings, hope to drive prices down for all other market participants to see. Those participants think […]