A GAME CHANGING REALISTIC APPROACH TO THE CRYPTOCURRENCY MARKET THAT NO ONE WILL TELL YOU ABOUT!
You may already be familiar with the volatility nature of the cryptocurrency market. However, there is a simpler method for identifying the areas of volatility, impulsive behavior, and traps.
Let me give you a simple explanation.
The fact that whales employ these factors to influence the market is still unknown to many traders. You can always rely on market structures to predict how prices will develop. Nevertheless, you frequently become sidetracked and misguided. This is how it takes place. Every time the market gives you a direction, you follow it without hesitation because of the excitement around it. It has the propensity to add you to its shakeout list. In a market that has already seen significant ups and downs, shakeout is simply defined as the time when most people would enter late longs or shorts (e.g. markup and decline market structure at its climax and spring). Additionally, it involves making early long/short trades in a market that is still evaluating its support and resistance. Those who join early/late longs/shorts at pivotal moments in the market where shakeouts may occur are nearly exactly like a spider catching its prey on its spiderweb.
What impact does this have on market volatility, then?
Since the majority have already placed sell orders at the crucial support levels, it is very likely that it will bounce before collapsing. The market's fluctuation would shake many people, causing impulsive waves from the liquidities they've created. Many people would imagine a breakdown right away. Since it will constantly generate waves from the liquidated traders who are too anxious to wait for the market to unfold but are correct in their predictions (particularly with regard to price actions), the market will think differently. Consequently, the market's increased volatility is caused by the various choices made by the majority of traders, but only one that would result in their entire trade being lost in the market's liquidity.
These posts are for educational purposes. To guide the people who might still be struggling within the crypto market, those who are new to the environment and volatility and everyone else who needs it.
Stay wise, trade cautiously.