Let's discuss supply and demand.

❓Where does the price of a token or coin come from?

❓What actions of market players influence its value?

In any market, the price is a key factor. It's a balance between supply and demand.

One side wants to sell, while the other wants to buy. The balance between them sets the price.

Knowing this, we can try to predict price movements.🔮

If there are more buyers than sellers, the price goes up. The opposite is also true.

We can then understand which groups (entities) want to buy and sell, and when they do so.

⛏For instance, in BTC's early days, miners were the main group.

Every four years, a halving event occurs, cutting miners' rewards in half. Miners made up most of the trades.

This is where the four-year BTC growth cycle comes from, especially the first three cycles.

A year or two before a halving, the market is in a "correction" phase.

After the halving, a significant price increase follows, as the available offers drop sharply.

Today, miners no longer dominate the market and corporate entities drive the cycles.

For instance, they follow a fiscal year, correlating with the stock market.

These same entities are involved in selling stocks and crypto.🤷🏻‍♂️

Greed and fear cycles exist in both crypto and stock markets.

While cycles repeat, there's always something new and challenging to predict.

Funds have specific rules.

For example, when something happens they can only hold on to 70% or start to sell.

Also, their planning horizon is way longer than retail traders.

Whales are the major players behind funds, influencing supply and demand.

There are also support and resistance levels, which exist in trading. In charts, these are the spots/prices with large trading volumes in the past.

We need to understand the life cycle of these players, and their patterns, to predict market moves and create strategies.

Certain players with a high success rate can be traced. When they buy, prices often rise, and vice versa.

Finding these players is tough, but with close observation, you can spot their traces.👀