The current market trend shows new investors eagerly entering the market, driving prices up by a significant margin of 20-50%. This surge is fueled by the Fear Of Missing Out (FOMO) on the ongoing Bull Run, playing into the hands of experienced traders, often referred to as "whales."
Many individuals may not fully understand the intricacies of events like the Bitcoin halving, but this lack of knowledge can leave them vulnerable to manipulation by market movers. It's essential to approach trading with caution and not solely rely on speculation.
Looking ahead, it's crucial to recognize the strategy employed by whales. They patiently wait for the opportune moment to sell off their holdings, triggering a sharp decline in prices. This sudden drop prompts panic selling among inexperienced traders, exacerbating the downturn.
However, this downturn presents an opportunity for whales to accumulate more assets at lower prices, capitalizing on the fear and uncertainty prevalent in the market. It's essential for traders to remain vigilant and not let emotions dictate their actions, as fear and greed can often cloud judgment in the trading arena. Understanding these market dynamics can help traders navigate volatile periods more effectively and avoid falling victim to manipulation tactics.