The post highlights 12 key observations about cryptocurrency market dynamics, focusing on perceived manipulation by large traders or "whales" and exchanges. Here's a breakdown:
Day vs. Night Trading Patterns
- Daytime Drop, Nighttime Pump: Buy the dip during the day, as foreign traders might pump the market at 21:30.
- High During the Day, Drop at Night: Be cautious when chasing highs during the day, as prices might drop at night.
Pin Bar Signals
- Pin Bar Strategy: Use pin bars as a key signal for buying and selling, with deeper pin bars indicating stronger signals.
News and Price Movements
- News-Driven Pumps: Major news events can lead to price increases, but prices often drop after the news is out.
Community Sentiment
- Overenthusiastic Promotions: Be wary of overly enthusiastic promotions, as they might be a sign to take the opposite action.
Stop Losses and Liquidations
- Liquidation Triggers: Manage positions carefully to avoid being on the exchange's watchlist for liquidations.
- Stop Loss Behavior: Be aware that stop losses might be triggered to manipulate traders out of their positions.
Market Manipulation
- Profit-Taking Signals: Taking profits can be seen as a signal to the market, and not exiting might limit further price movement.
- Excitement and Drops: Sudden drops often follow excitement, which can be a sign of market manipulation.
- FOMO and Market Movements: FOMO into the market can be a sign of manipulation, especially when traders are broke.
General Market Control
- Market Manipulation: The market is believed to be manipulated over 80% of the time, emphasizing the importance of reactive strategies and position control.
By understanding these dynamics, traders can develop a contrarian approach to trading, taking opposite positions when certain signals are present.