Most investors in Bitcoin (BTC) expected a big pump after tax day which is why it did not happen. Makes sense? Let me put it this way, when you start trading you put your stop loss around all these beautiful trend lines and it fails you most of the time. Then you get to thinking why people actually draw trend lines if they are not supposed to work? A little more digging followed by practice and you realize that the point where you used to place your stop loss should actually be the point you open your positions.
This is nothing new. It may be for some first time investors in Bitcoin or other cryptocurrencies but this is a decades old practice that banks and large financial institutions have been successfully using to target mainstream investors and surprisingly enough it works most of the time because most of us do not learn from our mistakes or think about why something has happened. Investors these days are quick to take to reddit and twitter and complain about market manipulation and evil schemes of the whales but they fail to realize that for most financial institutions that want to accumulate that particular financial asset, be it stocks, forex or cryptocurrencies like Bitcoin, it is a need not a want to do this. This is called iceberg orders. Consider a large institution trying to stock up large amounts of Bitcoin. They cannot buy all their Bitcoin in one go. That would spike the price astronomically and then most of us would dump their Bitcoin to take profits the next day and that large financial institution would come out as a big loser.
Read more on this analysis here: cryptodaily.co.uk/20...t-another-bull-trap/
This is nothing new. It may be for some first time investors in Bitcoin or other cryptocurrencies but this is a decades old practice that banks and large financial institutions have been successfully using to target mainstream investors and surprisingly enough it works most of the time because most of us do not learn from our mistakes or think about why something has happened. Investors these days are quick to take to reddit and twitter and complain about market manipulation and evil schemes of the whales but they fail to realize that for most financial institutions that want to accumulate that particular financial asset, be it stocks, forex or cryptocurrencies like Bitcoin, it is a need not a want to do this. This is called iceberg orders. Consider a large institution trying to stock up large amounts of Bitcoin. They cannot buy all their Bitcoin in one go. That would spike the price astronomically and then most of us would dump their Bitcoin to take profits the next day and that large financial institution would come out as a big loser.
Read more on this analysis here: cryptodaily.co.uk/20...t-another-bull-trap/