Let me clarify that this writing is NOT intended to be financial advice NOR a F.U.D., so feel free to take it as you may with whatever information I will be giving to you. I hope that this will give some of you peace of mind and clarity with what’s going on with the crypto market with all it’s volatility and drama.
Let’s begin.
Part 1
The world is made of patterns, and once you see those patterns you will understand.
Crypto price moves up and down because of small and large forces. If you identify those forces and what influence they have, then you can use them to trade WITH the market and predict their movements.
Musk tweets, crypto dumps. Breaking news of a partnership by your favorite crypto, crypto goes up. But what if I tell you it’s more complicated than that? That there are things going on in the background that most people do not know, even those who have been here since the beginning. Like what happens when your dog was supposed to go to the moon, but actually crashes. After a few days you find out on the news that huge investors actually shorted it. Let me give you some context before we go down the rabbit hole.
The Wyckoff Method
The Wyckoff method is a technical analysis approach for navigating the financial markets based on the study of the relationship between demand and supply forces. Wyckoff recognized that the stock market back then was unregulated and extremely manipulated by certain investors to fleece retail investors who are uninformed and those who operate the market in a simple psychological sense. He died in 1934, the same year S.E.C. was formed. Yup.
This method can be used in the crypto market to uncover intentions of super traders, who can also be referred to as “Whales”. These crypto whales are expert traders/institutions who know what they are doing and are great at what they do.
If you google an example chart of Wyckoff Method and compare it to the daily chart that Bitcoin is currently in since the beginning of February 2021, you’d be surprised how identical, accurate, and planned everything has been. You can also see the Wyckoff method in 2017 bull run, and 2020. Which is invisible to most people who don't know technical analysis. What does this all mean and how are they related to what’s happening in crypto?
I will tell you.
The crypto market is completely and extremely, without a doubt, manipulated. Period.
Unfortunately, the crypto market has been pathetically unregulated ever since its inception, because it’s new and evolving and yes, even now with all the attention that it’s getting from different governments and institutions. If you pair that with easy and huge profits, you better bet that people will abuse it.
These people/institutions prey on the uneducated, uninformed, and people in desperate situations. They know you the way advertisers know the psychology of their customers. You can keep telling yourself that you can’t be their subject because you have done enough research and that you can outsmart the market. But you’re playing the game that they built, and you’re under their rules and systems whether you agree with it or not. You can be cute and tell everyone about your chump change profit that you made, but in reality most people will lose their money, savings, and be in debt because they treat this market like a casino, especially when the mania phase begins. I KNOW HOW IT FEELS. To be in a desperate situation especially with how the pandemic is hitting everyone, mentally and financially. I know what it feels to see a glimpse of hope to turn your life around. I know. Trust me. You have all my empathy. But I don’t want you to get wrecked because of that same hope.
Wherever huge amounts of money is involved, the scummiest and the greediest people in this world will be at it. Whether be at Wall Street, Banks, Politics, and Crypto.
This might be a red pill that’s hard to swallow for most people who have been here since the beginning and some who are new, so you’re free to take it or don’t. It’s completely up to you.
That being said, not all is dark and gloomy. I believe in the technology of what blockchain will bring, and know that once the dust settles, everything will make sense. I will repeat what I said in the beginning, that the world is made of patterns and once you see you will understand.
Maybe I will post more about this topic and elaborate about specific things in the future. Who knows.
Great stuff @christophbanks , thanks for your time and dedication.
jan1000
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wauow ik ben best onder de indruk van je krijg kippevel als ik dit zo lees
skyerry_2004
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Great introduction!!
Guinness666
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Thank you.
VIDAL01MX
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I have been following your publications and specific analysis of XRP, you explain how the movement made by those who manipulate the market can be anticipated and how it can be anticipated, however when I see for example this analysis where you were going long, it is seen that it cannot be foreseeing what those institutional funds of banks etc, that you mention manipulate the market, will do, as you can see, in general is something that not even the Wickoff method has been able to foresee. Blessings