Story of Market Cycles - Retail traders and whales
I need to apologize first for my bad drawings, but the idea and the concept that sits behind them are more important for you to understand.
Please take your time and follow every step. When doing that, please think that YOU, AS THE READER OF THIS POST, are a whale, holding 1% of the total coin supply. This is very important in order to understand the fundamentals behind the price action.
1. The US government starts to print money and ALL markets are going up including crypto.
2. After the last crypto bullish cycle, ETH felt down under 100usd, and now it is 2000. You as a whale ( big mining companies usually because they never ever sell ), are finally in the money, after 3 years in bear market, and you start selling to recover losses ( electricity bills, employers, money loans, etc)
3. Price is falling under 1500k, so you are aware of a bullish market, of minimum 1 year ( please remember this ) and so you buy, together with all retail traders ( they are reacting late usually) so the price is going to new highs like never seen before.
4. Everyone starts selling for profit, including you as a whale, and retail traders. On the other side of your trades, are FOMO retail traders that hope that ETH will reach 10k soon, and are locked in buy mode.
5. '' What a great chance to buy cheap again. The price is now 1500usd, after 4500 usd ATH and we are still in the middle of the year 2021. Let's add to the position as much as we can, but slowly because nobody wants to sell now'' This was the period my mom, 65 years, find out about crypto and she wanted in also... I just want to point this out because that was the period of retail traders coming from all corners of the world, and all ages...etc. But that is nothing more than liquidity for the market.
5. 6, 6b, and 7, You want to buy as much as you can, but there is nobody willing to sell now, in a bull market. You need to find ways to manipulate the market and buy as much as you can so you start to push the price at 1500 levels in order to load bigger buy positions. The reason investors are doing that is simple. If somebody wants to buy 1 mil coins for example at 1500 price, but people are holding and not selling, then how they are going to buy those 1 mil coins? Easy, they are going to buy in small batches, like 250k, and again 250k, and again...
8. Last chance to buy cheap
9. Price is again at 4k, You sell to make some profits and get a chance to buy at a discount again, maybe under 3k.
10. Add more to your buy positions
11. Price is breaking ATH again, and again, cryptocurrencies have made hundreds of millionaires with this bullish cycle. But that is at the end of 2021, and same like 2017, the bullish cycle is ending. You as a whale, know this, while retail traders are still locked in buy mode. You start selling for profits, and on the other side are retail traders hoping to sell in profit at 10k. In another scenario, here, you, together with other whales, are starting to short the market, because the bullish cycle is over.
12. Take profit for short trades
12, 13, and 14, Is just a mirrored pattern of 5,6,6b . Just another market manipulation to add to short trades.
15. Last chance to - Sell High -
16. Take profit for Short positions
17. Adding more to short positions
18. Short sellers from point 17, need to take profits. Will it be to new lows? Probably... because next point
19. Discounted price again in cryptocurrencies. And now the big question is, what will be the NEXT best price YOU AS A WHALE want to buy cheap, and hold until the NEXT BULLISH CYCLE?
a. 750usd
b. 500usd
c. 300usd
d. lower
Probably all of them. For the next period, the only intention that whales will have is to buy cheap and add to their LONG position, every time the market will give this opportunity. So my expectations are that the price will go lower than 1000k, to create new buy opportunities.
These 'add to LONG position' levels are going to be played for a long period until the WORLD ECONOMY starts to look better again.
And Then, point number 1 will start again.
Piece of honest advice, be an investor these days on crypto, and not a trader. Buying as much every time you can, maybe 5% of your salary every month, will make you a wealthy person in 10 years.
If you have reached this far, thank you for your patience. I hope it was useful.
Please take your time and follow every step. When doing that, please think that YOU, AS THE READER OF THIS POST, are a whale, holding 1% of the total coin supply. This is very important in order to understand the fundamentals behind the price action.
1. The US government starts to print money and ALL markets are going up including crypto.
2. After the last crypto bullish cycle, ETH felt down under 100usd, and now it is 2000. You as a whale ( big mining companies usually because they never ever sell ), are finally in the money, after 3 years in bear market, and you start selling to recover losses ( electricity bills, employers, money loans, etc)
3. Price is falling under 1500k, so you are aware of a bullish market, of minimum 1 year ( please remember this ) and so you buy, together with all retail traders ( they are reacting late usually) so the price is going to new highs like never seen before.
4. Everyone starts selling for profit, including you as a whale, and retail traders. On the other side of your trades, are FOMO retail traders that hope that ETH will reach 10k soon, and are locked in buy mode.
5. '' What a great chance to buy cheap again. The price is now 1500usd, after 4500 usd ATH and we are still in the middle of the year 2021. Let's add to the position as much as we can, but slowly because nobody wants to sell now'' This was the period my mom, 65 years, find out about crypto and she wanted in also... I just want to point this out because that was the period of retail traders coming from all corners of the world, and all ages...etc. But that is nothing more than liquidity for the market.
5. 6, 6b, and 7, You want to buy as much as you can, but there is nobody willing to sell now, in a bull market. You need to find ways to manipulate the market and buy as much as you can so you start to push the price at 1500 levels in order to load bigger buy positions. The reason investors are doing that is simple. If somebody wants to buy 1 mil coins for example at 1500 price, but people are holding and not selling, then how they are going to buy those 1 mil coins? Easy, they are going to buy in small batches, like 250k, and again 250k, and again...
8. Last chance to buy cheap
9. Price is again at 4k, You sell to make some profits and get a chance to buy at a discount again, maybe under 3k.
10. Add more to your buy positions
11. Price is breaking ATH again, and again, cryptocurrencies have made hundreds of millionaires with this bullish cycle. But that is at the end of 2021, and same like 2017, the bullish cycle is ending. You as a whale, know this, while retail traders are still locked in buy mode. You start selling for profits, and on the other side are retail traders hoping to sell in profit at 10k. In another scenario, here, you, together with other whales, are starting to short the market, because the bullish cycle is over.
12. Take profit for short trades
12, 13, and 14, Is just a mirrored pattern of 5,6,6b . Just another market manipulation to add to short trades.
15. Last chance to - Sell High -
16. Take profit for Short positions
17. Adding more to short positions
18. Short sellers from point 17, need to take profits. Will it be to new lows? Probably... because next point
19. Discounted price again in cryptocurrencies. And now the big question is, what will be the NEXT best price YOU AS A WHALE want to buy cheap, and hold until the NEXT BULLISH CYCLE?
a. 750usd
b. 500usd
c. 300usd
d. lower
Probably all of them. For the next period, the only intention that whales will have is to buy cheap and add to their LONG position, every time the market will give this opportunity. So my expectations are that the price will go lower than 1000k, to create new buy opportunities.
These 'add to LONG position' levels are going to be played for a long period until the WORLD ECONOMY starts to look better again.
And Then, point number 1 will start again.
Piece of honest advice, be an investor these days on crypto, and not a trader. Buying as much every time you can, maybe 5% of your salary every month, will make you a wealthy person in 10 years.
If you have reached this far, thank you for your patience. I hope it was useful.