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A Model to Explain What Happens in Financial Markets During Artificial Pressure That Disrupts Natural Trend Objectives
Take the Wyckoff model, for instance—known as a pattern of accumulation or distribution depending on its context. Its strength lies in the timing of its occurrence.
Now, consider a scenario like this one: A particular token attempts to align with Bitcoin’s trend, under the assumption that market conditions are ripe for liquidity gathering to drive prices higher. Indeed, it breaks through a significant weekly/monthly resistance (highlighted in yellow). However, unexpectedly, Bitcoin—which dominates liquidity and sentiment—drops, forcing the rest of the market to follow.
Question: Why would a token, after breaking through a strong historical resistance level, suddenly fall back? These levels aren’t typically breached easily, nor should they be lost so easily.
Bitcoin’s Liquidity Dominance
Bitcoin’s control over market liquidity makes it the primary indicator and driver of overall crypto performance. Any token that moves against it risks losing momentum and value, regardless of its technical strength.
The Current Dilemma
Today, Bitcoin has reached all-time highs, yet many altcoins have returned to multi-year lows and failed to reflect Bitcoin’s bullish outcomes. So, what’s the next logical step?
In 2021, some tokens saw over 40x growth within 4 months. What we might witness now is a similar surge, compressed within 3 to 4 weeks—a rapid movement compensating for the time and liquidity lost due to prior manipulations or market suppression.
⚠️ Final Note:
Be prepared to exit your trades at any sign of euphoric rally. Sudden optimism often marks the exit point for smart money.
At the beginning, altcoins (alternative cryptocurrencies) were aligned with Bitcoin’s mission: decentralization, financial freedom, and innovation. Many aimed to improve Bitcoin’s limitations — faster transactions, better privacy, smart contracts, etc.
But over time, something changed:
* BTC became the “digital gold” — a store of value. * Altcoins became speculative assets, with most offering hype but little real utility.
Correlation broke:
When Bitcoin pumps, alts lag or bleed. When Bitcoin dips, alts crash harder.
What do you think is the reason? Write in comment and i will post the correct answer in a separate post
GALA is trading around $0.0165, showing a slight downtrend this month. Technical indicators are neutral to bearish, with resistance at $0.018 and support near $0.0155.