Most people believe that the market reflects supply and demand, reflecting the rational decisions of investors, but the truth is completely opposite. The invisible hand does not exist at all. Market prices are always managed by the visible hand of the state through laws and regulations.
Insiders hold the market in their hands, manipulating prices at will to maximize profits. One thing is certain, price manipulation occurs everywhere and is inevitable. This phenomenon occurs in all markets of stocks, bonds, commodities, currencies, etc. There are many ways to manipulate prices in the market, one of which is to manipulate prices through news and social networks, which I call the game of lies.
Watching investors holding large amounts of virtual currency is a trading trick based on observing the transactions of the richest and most influential investors. This article aims to explain smart transactions in the virtual currency market, understand how to manipulate prices in the market.
Most investors do not understand the importance of trading volume and its impact on market analysis. At any given time, there will be investors taking long positions, short positions, holding positions, some waiting to enter the market, some making a profit.
A long position is when an investor buys with the hope that the price will increase, a short position is the opposite. Whenever an investor enters the market, the exchange will continuously update the trading volume. Trading volume reflects activity and directly affects the price chart.
Traders holding large amounts of cryptocurrencies will contribute to 70-80% of the trading volume, large enough to manipulate the market as they wish. In this article, I will not go into identifying the signs of this group of investors but will focus on how to manipulate prices from their perspective.
Individual investors trade in the market with the sole purpose of profit. Many investors are very cautious before placing an order, racking their brains to assess whether the price they buy or sell is too high or too low. Despite many investors having good technical analysis skills, they still lose money.
The reason is that you do not understand the trading methods of traders holding large amounts of virtual currency. They are extremely smart, quick-witted, bold, extremely patient individuals and one thing that is special is that they do not follow the rules of the game. The price can increase by 100%, 200%, but it is never too late to participate for them. Simply buy high? Sell higher! Sell low? Buy lower!
For any basic investor, this process simply consists of pumping and dumping. However, to successfully pump and dump, there are many stages.
- Position Preparation
There are many ways to prepare a position. In this stage, traders holding large amounts of cryptocurrencies need to have a large enough amount of cryptocurrencies to overwhelm them in preparation for dumping. The best technique is usually to buy small amounts, avoid pushing the price up and avoid detection. Some altcoins have very low trading volume so it takes a long time to gather enough coins by buying small amounts. In that case, investors holding large amounts of cryptocurrencies are forced to pump to stimulate sellers to get what they need, which is a large market share. This I have applied to the Doge/BTC, UNO/BTC, Dev/BTC and LIZA/BTC pairs.
- Push the price down
It makes no sense, right? Why don’t we pump the altcoins a few times before pushing the price down? But as I said, price doesn’t matter to traders holding large amounts of cryptocurrencies as long as I can sell higher. However, like any business, I want the lowest cost possible. In the early stages, the fat guys want to buy as many coins as possible, by selling in large quantities at low prices, buying back their own coins while pushing the crowd to sell coins at low prices. The price wall is created by traders holding large amounts of virtual money like the invisible hand of the market
- Test pump
Before the real pump, traders holding large amounts of virtual money often test the market. Why? Very simple. They want to make sure that the number of coins they have is enough to control the market. Like other stages, test pumps will take place many times during the whole pumping and dumping process. By testing pumps, this group of people will determine the resistance levels of how many chickens are trading. Investors holding large amounts of virtual money do not like chickens, because they do not create support levels during the pumping process. Therefore, they want to eliminate these noise signals right from the beginning.
- Real Pump
As the name suggests, all the chickens will be pushed out of the market, the investors holding large amounts of virtual currency have started to have market share and are ready to take the necessary steps.
- Pushing
This is the action of creating a price reaction, promoting a market sell-off to support new speculations. This stage will be extremely bold. Sometimes we push the price lower than the price we bought. However, the loss is not a problem for them, because it is only on paper, we have enough money to pump back. Inexperienced investors will not be able to withstand the psychological shock and will sell off.
- Rebalancing
This is the stage where we rebalance the portfolio. During this test pump, investors holding large amounts of virtual currency may have sold you some coins or when pumping, they bought their own virtual currency and they bought more than they intended. During this phase, investors holding large amounts of virtual currency will sell the excess to retail investors at a certain price.
This price will become a support level, reducing the risk for investors holding large amounts of virtual currency. For example, when you buy a coin at $ 5, if the price is pushed down to $ 4.5, you will not sell at a loss or break even. We know this and know the amount of coins we sell at $ 5, so this price will become a support level. This process will take place in many stages.
- Exiting the goods
This is the final stage. This is the stage where we start to take profits and exit the market. There are many methods to implement this strategy. One of the methods is to sell a small amount or sell into the buy wall. Although this is a good method, it brings less profit.
Another method is to exit during the pump. This is done by creating a large number of sell orders and then buying back the same coin many times, pushing small investors into the buying market. When many investors start buying, we will buy more and place more sell orders at many prices. When the buying power is weak, we start buying again, the process is repeated many times until we completely exit the market.
Another way to place a sell wall. If you have ever traded Dogecoin, you will know this, I like to sell walls to buy cheap dogecoin. However, I also use this method to gradually sell the coins that many people think I am trying to push the price down.
- Comments on the most recent pump-and-dump of investors holding large amounts of virtual currency
In 2017, did you see investors holding large amounts of virtual currency performing the perfect pump-and-dump of BCH, BTG, the price of BCH from 3xx to 2800. A very dramatic story.
The stages of deceiving new holders
When the price of bitcoin was filled from low to medium, the huge profit in a short time made new investors join the BITCOIN market, they began to pay attention and buy Bitcoin.
When Bitcoin stagnated, the profit from Bitcoin gradually decreased and the profit from Altcoin increased very strongly, causing investors to transfer all their capital to Altcoin and got a big profit, pushing the price of Altcoin up spectacularly.
When Bitcoin (BTC) reached its peak, investors holding a large amount of virtual currency forced short margin very strongly, causing the price of Bitcoin to drop deeply, creating a downward trend of more than $1000. BTC capital decreased more and more, partly flowing through the top coins. So when BTC price reached the top, investors holding large amounts of virtual currency took action to create a large dump, at the same time they collected Altcoin at extremely cheap prices (because BTC rose strongly for many days, so Altcoin price decreased continuously for many days, when BTC reached the top, Altcoin reached the bottom), at this time BTC price went down more and more, during this period they pushed the price of BCH and BTG and some other coins up strongly, taking advantage of many marketing channels, Investors holding large amounts of virtual currency spread favorable news for BCH and BTG, that they would replace BTC, because the BTC hard fork would not happen, making investors have faith in BCH, BTG and Altcoin, pouring money into buying Altcoin, when small investors were intoxicated with the delicious bait of Altcoin, investors forgot that they would be caught at the top, when BTC reached the bottom, investors holding large amounts of virtual currency immediately transferred cash flow from altcoin to BTC, at that time trading was inexperienced altcoin peak experience, btc up.
You see, the capital circulation process of investors holding a large amount of virtual currency is too perfect, creating investor confidence in Altcoins, they have earned a lot when BTC peaked at 7800, and ALT, finally investors holding a large amount of virtual currency have the most profit.
You need to pay attention, timing is the most important, when BTC reaches the bottom, it is also the time when Altcoin reaches the peak, or vice versa, that is the time when investors holding a large amount of virtual currency perform operations to earn large profits and their ultimate goal is to collect a lot of BTC at the lowest price, selling Altcoin at the peak is completed.
- Lessons learned when investing in virtual currency
I hope that small investors will always be alert and always be vigilant against any excessive fluctuations of virtual currencies, all of which are tricks of investors holding large amounts of virtual currency, exit at the right time.
Therefore, to win over investors holding large amounts of virtual currency, we should not practice thinking like investors holding large amounts of virtual currency, be one step ahead of them, do not be too drunk on victory and become a delicious bait for them.
Hope you understand more about investors holding large amounts of virtual currency, remember one thing, when there is a bump phenomenon, you can participate in making profits, you can enter a part of the capital in the early stage, and pay attention to the trading volume with specific pumping and dumping phenomena, and exit at the right time, you enter when it bumps halfway, you also win, but the risk is high, the profit is not much.
In addition, there is an even simpler way, which is to find investors holding large amounts of virtual currency and swim hard with them, in this case you are part of the investors holding large amounts of virtual currency, but finding them is not simple.
