Xcalibur007

Crypto crashes - why the shock?

BINANCE:BTCUSD   Bitcoin
I have had a few disagreements with authors on Tradingview and many more over 4 decades with people that do not believe manipulation to be endemic within the financial markets. I now believe crypto to be one of the most manipulated financial markets, often with shock and awe events happening on weekends when lower trading volumes enable prices to be more easily manipulated. It is a fact that large buyers of financial assets need liquidity to get in and out of positions without significantly altering prices. This can only happen by encouraging retail pessimism during the purchasing phase and retail euphoria during the selling phase. On top of this, we have retail traders offering up technical analyses by the dozen without realizing that they are aiding their own demise. Technical analyses, such as Elliott Wave, work until they don't because it is useful to paint chart patterns that drive the herd. Similarly, the public is educated to believe that price action is driven by fear and greed. A very useful mantra. How about - no? Pump and dump does a better job of explaining the saw-tooth price patterns with see in every asset and pump and dump schemes have been operative for centuries. Where retail comes unstuck is that it does not have access to full order flow data or the means to develop algorithms that indicate the ebb and flow of trader interest. If you have access to the full suite of buy and sell orders sitting in the system, together with their rates of placement, and you have knowledge of the stop loss levels and profit targets that traders have set, you have 95% of what is required to know when to pull the plug and when to pile in. As a retail trader, your only real protection against the kind of 27% drop we've seen in a day is to set a tight stop loss or ride out these stomach churning drops in the belief that the asset will recover to a price higher than that at which you bought it. Sadly, the entire world is manipulated by big money and I become less convinced by the day that crypto offers a way out because the fiat peddlers have already exchanged their paper for a manipulative chunk of Bitcoin and Ethereum.
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