As we all know, any market is formed by supply and demand. Now I will explain what is actually happening with the markets, including the cryptocurrency market.
At the moment, most traders around the world are in purchases. However, the total amount of this money is not enough to push the trading instrument up — after all, there are puppeteers who have much more money. They gradually sell off assets in small positions, lowering the price down. This applies not only to cryptocurrencies but also to oil, indices, forex — any market.
Right now, there are more buyers in the world than sellers, but market makers, government regulators, puppeteers — call them what you want — do not allow the market to rise. As I have already mentioned in other posts, the market will continue to fall while the majority of traders remain in purchases. You will be forced to close positions at a loss, and by doing so, you will accelerate the price drop.
As soon as the majority of traders lose faith in growth, and there are more sellers than buyers, the puppeteers will start buying contracts at a low price and will form an upward trend again. This scheme worked 100 years ago, and it will work now. The market is driven not by the number of traders, but by big money. And big money is not with the traders, but with the market makers: JP Morgan, Goldman Sachs, Bank of America. In cryptocurrency, it’s Binance, Bybit, and other large exchanges.
All these market makers are closely tied to the American economy, the dollar, and act together. If you currently believe in a sharp price reversal and continued growth — you are either inexperienced or simply naive.
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