ביטקויןהשכלה
Bitcoin Whales And Their Bots Controlling The Market
A few days ago i said i would make an educational analysis about that pattern i saw a few days, something i have seen many MANY times this year. Especially since May until September this year. What do we see here:
After breakouts like we had a few days, where we see a squeeze up happen within 1 or 2 minutes, we see a dump happen just as fast and usually around 50% of the up move. The most important factor, is the speed of the push down. These are bots in action because nobody can react that fast AND feel so confident to push the price down during a squeeze up, unless you know you have unlimited funds and volume to play with. The only time i know they failed, was in July, when the 6800 broke and we rallied to 8.500. If you remember, i mentioned that several times, because since that moment, it took a while until they showed up again. Where around 200 mil got liquidated that day :)
After the push down has been made, we usually see a small bear flag forming, like they are getting a feel of the buying pressure of the market before they start to make their second push down. A few days ago, the buy volume was probably still too strong to we tested the high again, something that didn't happen earlier this year. So there is a slight change in that pattern.
Today's move, which i warned for yesterday was only a 30/40 point move up. But the push down fits the profile i described. And since we are at lower prices now, it might be fair to assume they are at it again.
What and why do they do it.
Why? They play games with over leveraged traders. We always get these obvious resistance or support levels. If it's a bull or bear flag. So many traders who are breakout traders go long at these highs while they have their short orders already in the book ready to get filled. Then they push the price down just as fast putting these bulls under immediate pressure. They wait and see a bit how the rest of the market reacts, if they see volume dropping, they start to push the price down even more.
Because they trapped these breakout traders, they use THEIR volume as their own, because as soon as these over leveraged traders start to get in a loosing position, they will cut their losses and start to sell as well (or get liquidated which has the same result). So creating volume (fuel) for these whales. And if the market is not strong enough to catch the volume of both of these sellers, we start to see those Bart moves and the market starts to drop again.
You probably remember this chart i showed a week ago, before that move up happened AND we dropped again as well. This is a bigger version and a different pattern but it's the same tactic. In case you wondered how the hell did i know it would move like that, well know you have your answer :). Of course it is an assumption upfront and it's not that easy, but it does increase your odds in trading when your aware of these kind of things.
If i get a big amount of likes for this analysis, showing your support for this idea, i will make a part 2 and will show you many examples of these patterns. It takes me many hours to make these kind of educational posts, so i will only continue when i see some appreciation.
I also still have that long term (with log trend lines) educational post, i am half way but still needs a lot to complete it. I might post that one as well in the near future. Maybe some will finally see and understand the false preferences most TA analysts tell you. Not on purpose, they simply don't know any better. Now i don't need to prove my right with this and i won't even try, it's up to you to make your own conclusion. But i think the fact 90% of retail traders looses money in the financial markets says more than enough. The chart is here below, probably finished but i might still adjust it a bit
I can see only 1 solution for this manipulation, that is combining the volume of all exchanges in 1 order book. Because then they would not so much more volume to push the price around. Now they only need 1,2 or 3 exchanges and the rest will follow since there are so many bots reacting automatically. Combining all the volume, would make it MUCH more difficult to control. Not impossible, because the same manipulation happens on the normal markets as well.
So in other words, the decentralization of crypto is actually biting it in it's own ass when you think about it. Very unfortunate, but it's the hard truth.
Please don't forget to like if you appreciate this :)
Previous analysis:
After breakouts like we had a few days, where we see a squeeze up happen within 1 or 2 minutes, we see a dump happen just as fast and usually around 50% of the up move. The most important factor, is the speed of the push down. These are bots in action because nobody can react that fast AND feel so confident to push the price down during a squeeze up, unless you know you have unlimited funds and volume to play with. The only time i know they failed, was in July, when the 6800 broke and we rallied to 8.500. If you remember, i mentioned that several times, because since that moment, it took a while until they showed up again. Where around 200 mil got liquidated that day :)
After the push down has been made, we usually see a small bear flag forming, like they are getting a feel of the buying pressure of the market before they start to make their second push down. A few days ago, the buy volume was probably still too strong to we tested the high again, something that didn't happen earlier this year. So there is a slight change in that pattern.
Today's move, which i warned for yesterday was only a 30/40 point move up. But the push down fits the profile i described. And since we are at lower prices now, it might be fair to assume they are at it again.
What and why do they do it.
Why? They play games with over leveraged traders. We always get these obvious resistance or support levels. If it's a bull or bear flag. So many traders who are breakout traders go long at these highs while they have their short orders already in the book ready to get filled. Then they push the price down just as fast putting these bulls under immediate pressure. They wait and see a bit how the rest of the market reacts, if they see volume dropping, they start to push the price down even more.
Because they trapped these breakout traders, they use THEIR volume as their own, because as soon as these over leveraged traders start to get in a loosing position, they will cut their losses and start to sell as well (or get liquidated which has the same result). So creating volume (fuel) for these whales. And if the market is not strong enough to catch the volume of both of these sellers, we start to see those Bart moves and the market starts to drop again.
You probably remember this chart i showed a week ago, before that move up happened AND we dropped again as well. This is a bigger version and a different pattern but it's the same tactic. In case you wondered how the hell did i know it would move like that, well know you have your answer :). Of course it is an assumption upfront and it's not that easy, but it does increase your odds in trading when your aware of these kind of things.
If i get a big amount of likes for this analysis, showing your support for this idea, i will make a part 2 and will show you many examples of these patterns. It takes me many hours to make these kind of educational posts, so i will only continue when i see some appreciation.
I also still have that long term (with log trend lines) educational post, i am half way but still needs a lot to complete it. I might post that one as well in the near future. Maybe some will finally see and understand the false preferences most TA analysts tell you. Not on purpose, they simply don't know any better. Now i don't need to prove my right with this and i won't even try, it's up to you to make your own conclusion. But i think the fact 90% of retail traders looses money in the financial markets says more than enough. The chart is here below, probably finished but i might still adjust it a bit
I can see only 1 solution for this manipulation, that is combining the volume of all exchanges in 1 order book. Because then they would not so much more volume to push the price around. Now they only need 1,2 or 3 exchanges and the rest will follow since there are so many bots reacting automatically. Combining all the volume, would make it MUCH more difficult to control. Not impossible, because the same manipulation happens on the normal markets as well.
So in other words, the decentralization of crypto is actually biting it in it's own ass when you think about it. Very unfortunate, but it's the hard truth.
Please don't forget to like if you appreciate this :)
Previous analysis:
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