Lately I keep seeing people watch whale addresses and want to follow every move... I still have that old habit: first figure out whether that transaction is for building a position or for hedging. To put it simply, a whale's "buy" might just be to insure another position, or even doing both sides at once, treating volatility as their meal; when you follow in, you only catch that small part they reveal, and it might just be at the point where they need you to provide liquidity.

I tend to look a bit more: whether there are transfers to exchanges at the same time, whether there are signs of opening a reverse position, whether the previous and subsequent transactions are "layered," don’t jump to conclusions that "they are bullish" just because of a large amount. Recently, there’s been a lot of noise about privacy coins/mixing coins, the compliance boundaries are quite blurry, and whales prefer to use hedging to wrap uncertainty... so don’t rush to become a believer. Anyway, I first put the word "hedging" on the table, and then decide whether to follow later.