Quick Lessons about Cryptocurrencies and Bitcoin
In this Article you will understand how to use Advanced Chart and how to use Cold and Hot Exchange Wallets transactions. This specific tool should be used together with Rich Address Balance and Whales Transactions.
First of all who are Crypto or Bitcoin Whales? The so called “Whales” are investors who hold a large amount of cryptocurrency and/or Bitcoin. These Cryptocurrencies and Bitcoin are detained into specific Address inside their Private Wallets. If you want to know more about Address and Wallets Click Here.
Advanced Chart is a powerful tool that shows into a single chart big TRANSACTIONS and NEWS which may have an impact on the price direction.
- TRANSACTIONS: in this section you can filter transactions between 1.000 and 50.000 Bitcoin within the first 100 (and more) Biggest Bitcoin Addresses. These are huge money operations which can influence the direction of crypto market price.
- NEWS: all the most important news from the main world wide websites, are collected and shown into the Bitcoin Chart so that you can see the impact on the price direction
HOW TO USE IT: Big Transactions and News are the main elements which can impact the price direction. When you see Whales (Big crypto investors) making multiple big transactions occurred in a short period of time, this can be a signal of big price correction within the following hours.
Moreover you can also use filters to show on the chart, 3 different categories of transactions that impact in different ways the price direction.. It’s not a rule, but keep in mind the following tips:
1. Hot Wallets Exchange - IN (+) Transactions - Bearish Signal
- Transfer BITCOIN into Exchange Hot Wallet suggests an intent to sell. Bearish. Usually when you see a green transactions (inflow) to the Exchange Hot Wallets, it means that people want to sell Crypto.
2. Hot Wallets Exchange - OUT (-) Transactions - Bullish Signal
- Transfer BITCOIN out of Exchange Hot Wallet suggest an intent to hold. If money is transferred to an Exchange Cold Wallet this could be a bullish signal. If money is transferred to an other Hot Wallet Address, probably this is not going to have a big impact on the price direction.
3. Cold Wallets Exchange - IN (+) Transactions - Bullish Signal
- Money go back to Exchange Cold Wallets and are not used from investors. This could be a signal that Whales and investors do not need or want to sell Cryptos and so Exchanges move them to more secure wallets (Cold wallets = not online wallets).
4. Cold Wallets Exchange - OUT (-) Transactions
- Transfer of BITCOIN out of cold wallets could represent different situations. If Cryptos have been moved to an Exchange Hot Wallet this could suggest that people want to sell. In this case we can look at Exchange Hot Wallets - IN transaction, with a possible Bearish Signal.
- If Bitcoins have been moved to other Exchange Cold Wallets, this doesn’t have a particular impact the the price direction.
5. Unknown Wallet - IN/OUT Transactions
In this situation it’s hard to evaluate the impact of a transaction if you don’t know wether it is a private wallet or an exchange wallet. We will continue to try to figure out Addresses which come from exchanges and take our list updated.