U Turn 😊

Crypto Market Crash. Meaning for the Bullrun and Alt Season.

Most people do not differentiate Crypto trading and Investing.

For crypto holders (Investors) such price corrections within a Bullrun are normal but for traders, many get their positions liquidated and end up losing a lot of money. it's a high risk high return game.

Markets do not Follow a chaotic manner but follow certain patterns. you can call it waves.

In Smart Money Concepts there is what's called Fair Value Gap. Markets tend to go back and rebalance the gaps left behind by sharp price movements before continuing with the previous direction and start a solid rally.

So Pullbacks are so normal before strong moves begin in the previous price trajectory.

Possible causes of the market Crypto Market Crash today.

1. Smart Money Vs Dumb money. Institutional Investors heavily manipulate the markets to make lots of money and at the same time get good entry points (Sell at Higher Prices and buy back at lower prices and vice versa).

Here, Retail traders get cooked. Institutional Money determines the Markets direction.

2. Whale Activity: Whenever big players in the markets dump certain assets just like Justin Sun did to Etherium ($119 Million worth of Etha). This Coupled with profit taking from traders and holders when new price levels are hit or market uncertainties kicks in, it triggers market sell offs leading to the overall price Corrections.

3. Key Economic Data Release like we expect the CPI, PPI and Import and Export price Index for US soon. These are going to be key determinants in the FED's interest rate decision which is also a major markets moving event.

Sometimes the impact is factored into the markets before they even come out! thanks to the insider information.

With all that in Mind, that market correction could possibly be a good reset together with the already declining Bitcoin Dominance to kick start the long awaited Alt Season.

Not a Financial Advice. Always DYOR.