Hey! This is gonna be important to read if you wanna have an idea of what's really going on and why we're seeing what we are today!
WE CALLED IT!
In yesterday's Idea which is linked below we noted that a very good possibility of what we were most likely looking at was a dead cat bounce on behalf of Market Makers and Whales in their attempt to lure in investors to buy in and open futures positions so that they can profit.
How does that work?
This has happened the last 3 times we saw pumps, they were followed by dumps even larger than the pump itself though personally I didn't expect it to happen so fast. Basically this is what happens:
If you don't believe me check this out, from Coin Glass data we can see that crypto has had over $407.69 Million in liquidations in the past 24 hours with Bitcoin alone counting for $76.17 Million in liquidations. They succeeded extremely well at pulling off a Bull trap and what usually will follow after these big moves is the buyback. The Makers do this so that they can sell at those high points for the most profit and then do what they must to cause a price dump and simply buy back up at the lows they have caused. I wouldn't be surprised if we see Bitcoin pump back up into the weekend as they accumulate. But this is basically how they do it and the explanation for these moves you see.
Technical:
In the Idea I'll be posting after this on the larger time frame I will show how we are also experiencing this dramatic fall based on technical. We've been in this falling wedge pattern as I noted in yesterday's idea as well and we even had broken out of it. However again thanks to the Makers we saw Bitcoin get pulled back down and once we entered back into that wedge again it was free game from that point on basically and this is a big factor as well of what has contributed to the dramatic fall in simply a matter of hours.
EMA:
We also have the EMA factor, we can clearly see that the EMA left the mountain as I like to call it and we simply left the mountain dramatically as if it were a cliff. And well that's a pretty dramatic fall I would like to think so we have seen a big drop thanks to that Ema factor as well. You lose that EMA momentum and you lose the ball. We'll recover. But until the EMA enters the mountain again I'm short and looking for $32,000 in the coming week or sooner based on how the market feels or more so, how the Makers feel.
Will we keep falling?
I'm sure a lot of you are wondering this but if I can give my best opinion while I am positive on a good summer and still long with that short term we definitely aren't seeing strength but the biggest thing as always is really just how Makers wanna react. We didn't just see Bitcoin fall but the market also had just as much of a dramatic day with the S&P alone down 153 so far with the market having just closed a few minutes ago. It wasn't just Bitcoin but the market was played. This definitely will instill a lot more stress on traders and inflict more worries than confidence in the market following such a move but as always the Makers got it, they always have an idea, definitely not always the best idea for everyone of course. But in general they don't want a money maker like crypto to simply fall over and lose the confidence of the community that helps them make profits, so they could also based on that psychology buy back in and bring us back up quick to jolt that confidence once again as we see time and time again. So only time will tell for now, but as always don't FOMO. Do your own DD and be wise and only invest what you are okay losing for sanity's sake!
I'll add more in the next Idea I posted but I wanted to get this one out in good time to keep you guys posted at important times of course! Thank you and please be sure to leave a like and follow or share, anything is appreciated and I hope you have an absolutely great day!
~ Rock
WE CALLED IT!
In yesterday's Idea which is linked below we noted that a very good possibility of what we were most likely looking at was a dead cat bounce on behalf of Market Makers and Whales in their attempt to lure in investors to buy in and open futures positions so that they can profit.
How does that work?
This has happened the last 3 times we saw pumps, they were followed by dumps even larger than the pump itself though personally I didn't expect it to happen so fast. Basically this is what happens:
- The whales and market makers will buy up the crypto to give the idea that big money is buying back in and making it seem like the 'bottom'.
- Then they wait for enough traders to enter back into the market and open futures positions. Think about it, if your a trader and you see crypto at what is a super low point, your likely to open a larger futures position at 37k than 39k. So what the whales do is based on Psychology again as I pointed out in the last idea.
- When enough traders open positions or buy back in, they coordinate and then sell their positions in a flash dump to surprise those in futures positions as they won't be able to enter enough margin in time to cover the drop or sell their positions. In a matter of 15 minutes we saw Bitcoin fall $3,000. This was no doubt their market manipulation to get those futures positions liquidated which in turn drastically causes a huge domino effect that we see every time and allows Bitcoin to absolutely plunge.
If you don't believe me check this out, from Coin Glass data we can see that crypto has had over $407.69 Million in liquidations in the past 24 hours with Bitcoin alone counting for $76.17 Million in liquidations. They succeeded extremely well at pulling off a Bull trap and what usually will follow after these big moves is the buyback. The Makers do this so that they can sell at those high points for the most profit and then do what they must to cause a price dump and simply buy back up at the lows they have caused. I wouldn't be surprised if we see Bitcoin pump back up into the weekend as they accumulate. But this is basically how they do it and the explanation for these moves you see.
Technical:
In the Idea I'll be posting after this on the larger time frame I will show how we are also experiencing this dramatic fall based on technical. We've been in this falling wedge pattern as I noted in yesterday's idea as well and we even had broken out of it. However again thanks to the Makers we saw Bitcoin get pulled back down and once we entered back into that wedge again it was free game from that point on basically and this is a big factor as well of what has contributed to the dramatic fall in simply a matter of hours.
EMA:
We also have the EMA factor, we can clearly see that the EMA left the mountain as I like to call it and we simply left the mountain dramatically as if it were a cliff. And well that's a pretty dramatic fall I would like to think so we have seen a big drop thanks to that Ema factor as well. You lose that EMA momentum and you lose the ball. We'll recover. But until the EMA enters the mountain again I'm short and looking for $32,000 in the coming week or sooner based on how the market feels or more so, how the Makers feel.
Will we keep falling?
I'm sure a lot of you are wondering this but if I can give my best opinion while I am positive on a good summer and still long with that short term we definitely aren't seeing strength but the biggest thing as always is really just how Makers wanna react. We didn't just see Bitcoin fall but the market also had just as much of a dramatic day with the S&P alone down 153 so far with the market having just closed a few minutes ago. It wasn't just Bitcoin but the market was played. This definitely will instill a lot more stress on traders and inflict more worries than confidence in the market following such a move but as always the Makers got it, they always have an idea, definitely not always the best idea for everyone of course. But in general they don't want a money maker like crypto to simply fall over and lose the confidence of the community that helps them make profits, so they could also based on that psychology buy back in and bring us back up quick to jolt that confidence once again as we see time and time again. So only time will tell for now, but as always don't FOMO. Do your own DD and be wise and only invest what you are okay losing for sanity's sake!
I'll add more in the next Idea I posted but I wanted to get this one out in good time to keep you guys posted at important times of course! Thank you and please be sure to leave a like and follow or share, anything is appreciated and I hope you have an absolutely great day!
~ Rock
