The devil's circle: Pump & dump will destroy crypto markets now!
hi guys,
i am not a financial adviser, not giving financial advise, trade at your own risk!
today a bit of a dramatic title so make sure you see what i think i see.
pump and dump is destroying the markets. the pattern is like this always:
1. big price spikes upwards, hundred, hundreds, even thousand or more dollars in the range of minutes sometimes! which person with a same mind suddenly buys an assets for 6% higher than the market price?
2. a few hours, days, weeks or months of the price staying a bit below the initial pump level - profit takes got trigger - but finally it dumps, suddenly the price plummets hundred, hundreds or thousand or more dollars.
this has the following negative effects, i call it the devilcs circle:
1. after the big dump, many liqudations got triggered, overly leveraged traders. volume is low, price going up and down, no clear direction.
2. people who took a big risk with high leverage, we know up to 100x leverage is easily possible! and lost their savings exit the market -> even more low volume
3. long time believers get shaken because the price is making NO LONGTERM moves! pump it up for some time, dump it down, back to start again.
4. the lack of longtime price increases draw make crypto markets look boring, flat to outsiders. they will not jump in, even less volume.
We will see in the next year a sharp decrease in all crypto prices and volume if the pump & dump (pump it up e.g. 6% in one day, few days, weeks months pump it down 6% again) continues like that, BTC/USD has the most of this action going on. I am afraid, the "big guys" will pump and dump until they cannot, until volume and price is destroyed.
i am not a financial adviser, not giving financial advise, trade at your own risk!
today a bit of a dramatic title so make sure you see what i think i see.
pump and dump is destroying the markets. the pattern is like this always:
1. big price spikes upwards, hundred, hundreds, even thousand or more dollars in the range of minutes sometimes! which person with a same mind suddenly buys an assets for 6% higher than the market price?
2. a few hours, days, weeks or months of the price staying a bit below the initial pump level - profit takes got trigger - but finally it dumps, suddenly the price plummets hundred, hundreds or thousand or more dollars.
this has the following negative effects, i call it the devilcs circle:
1. after the big dump, many liqudations got triggered, overly leveraged traders. volume is low, price going up and down, no clear direction.
2. people who took a big risk with high leverage, we know up to 100x leverage is easily possible! and lost their savings exit the market -> even more low volume
3. long time believers get shaken because the price is making NO LONGTERM moves! pump it up for some time, dump it down, back to start again.
4. the lack of longtime price increases draw make crypto markets look boring, flat to outsiders. they will not jump in, even less volume.
We will see in the next year a sharp decrease in all crypto prices and volume if the pump & dump (pump it up e.g. 6% in one day, few days, weeks months pump it down 6% again) continues like that, BTC/USD has the most of this action going on. I am afraid, the "big guys" will pump and dump until they cannot, until volume and price is destroyed.
Comment:
Like I predicted the price and volume will drop, BTC/USD down today 11%, big dump spike happened and triggered many leverages orders!
Comment:
Like I predicted more drop, now we will hit support and go up again or dump until feb 2019 level? I don't know, bitcoin is confusing