After reading this article, you will be able to visualize the overall picture in an easy way (or the opposite).
First of all, we must determine that all of us enter this market to make money, not to invest in technology, buy for profit and then run away, not because the technology of this one or that one is good. Good, superior technology labels, huge fundraising rounds, or whatever is just a label to create trust; this market grows mainly because of trust, and there is no real technology here. In a downtrend, even the best technology will hit the social bottom. Altcoins are essentially a money game for the fish to make huge profits, okay, let's move on.
Surely you have researched and know about the cycle of this market. The first increase will be $BTC => $ETH => top coins, then the other coins and the following trends. In my opinion, the recent rise of the #altcoin group was to create a FOMO wave for the next stronger and crazier step.
Ignoring the analysis of where the money flows, let's go straight to the main issue, which is how to pump and dump a coin, how the fish pump and dump on your heads. First, looking at the chart, you will know where the bottom is, right? Exactly, the fish will accumulate there, usually, the bottom area will stay flat for a long time. The fish will accumulate there with a huge amount. Where does the stock come from? From those who are tired and desperate at the top, only seeing a new bottom every day flowing into the pockets of the fish.
After accumulating, the next step is to push it up. Anyone who read the previous article will know how it pushes. Why doesn't it push straight up and then dump but pushes in waves like that? The answer is to create liquidity; if it dumps all at once, the chart will crash just like Luna. It will push up in waves to create FOMO; many newbies will buy here because the psychology of new traders is very funny, they only buy what is strongly increasing, seeing it drop 10% or 20% will sell immediately out of fear of further decline 😂.
After the newbies come in and see how cool it is up here, then those who bought at the societal bottom see it spike green and sell immediately out of fear it will drop, thus the fish have managed to shake off a bunch of buyers at the bottom. After that, the price keeps moving sideways in a low range; those who are late to the party will lose patience and sell out looking for another one that is strongly increasing 😂. (You learn from being hit a few times). After seeing most of the people leave, it pushes up again to x2, those who took profits at the previous level chant 'damn, I regret, I should not have sold' and rush to buy again. Those newbies stuck in another coin see this one flying too much and also rush to buy.
Now it hasn't come yet, but there will be a time when every day you wake up and see the account up 20% or 30%.
When the whole market is green, everyone wants to buy in and doesn't want to sell anymore because at this moment, in their heads, they only see the price going up forever, x3 x5 and still thinking it will continue to x3 x5. The brain is very silly; when both capital and profits are combined, the brain will automatically tell you that this is the money you just put in, and it will continue to increase. Then the fish will gradually dump, the price will stagnate or even slightly decrease; at this time, you think that's just normal because it has been going down and then coming back up stronger, so you, the newbies, are at the peak when the fish dump on you without knowing.
After dumping all the stock, the price will fall freely over time because there is no buying power left. It will continue to fall to low levels and reset to start a new cycle.
I'm tired now, I won't write anymore, see you in the next post.
