Let me cover two different topics today:
Some of you may not ever be aware of one particular incident that happend lately and for many traders and investors it has been a very difficult and stressful time.
Online sites have been full of news:
“Binance, one of the world’s largest crypto exchanges, has suspended trading — but says it wasn’t hacked”. Those were headlines of some online sites. Scary heh?
What does it mean for the market? It surely means that the overall market volume in effect will drop. And those who are not aware of this issue with Binance will react accordingly and would read it as the market getting weaker.
And for those who are using Binance, that anticipation and waiting period had to be a nightmare (I can actually relate as I am big Binance user myself). It’s just scary.
Luckily it seem that Binance is working fine already, and back on track. They kept updating users on the status of their progress with system updates. Extremely professional. My comfort level while I will be using Binance as a currency exchange site, will surely be way higher now.
2) CURRENT BITCOIN SITUATION
At the same time we are currently experiencing a bitcoin price growth with constant and steady drops of volume. For that reason, I cannot believe that the market will continue in the current direction for very long.
If you would take a look at recent bitcoin history, then you would see the exact same thing happened around 3 Feb-5 Feb.
Prices have been steadily increasing while volume dropped by half. And right after we tested another bottom.
Last one lasted around 3 days and currently we started this process almost 4 days ago.
Now all we need is some huge negative news spreading another wave of FUD and it’s all we need to test 6k again. I hope it won’t happen. Without panic another dip shouldn’t be very deep.
After all that’s how “big players” are “fishing” for cheap cryptos. Buying large quantities would bring the price up, which is not what big buyers need.
What they need is to allow traders and inexperienced investors to set stop-losses (which will accumulate a lot during current sideways movement).
And all big smart money needs to do is to bring the market down to the point that all those stop-losses are being triggered and market will be flooded with cheap crypto. Which smart money can purchase in huge quantities without bringing prices up.
Now please, before you criticize me. Try to put yourself in one of those big player’s shoes.
Wouldn’t you try to optimize your business by making sure that it is as cost efficient as possible? I cannot imagine that we would continue our way up without any big players trying to “collect” all those cheap “stop-losses” that are just piling up there.
My bet is that in short-term we will experience a dip and if no negative news will follow that dip, then we may assume that “big players” managed to buy however much they wanted and in their interest will not be bringing market down, but bringing it up. And understanding their interests is what we really need.
After all, there must be a reason why big players are being called “Market Makers”.