Is $BTC going to consolidate around 100k$ mark or it is just a silence before the storm of unclear direction? #BitcoinKeyZone
Whatever happens we shouldn’t be scared in downtime and don’t be too optimistic in up time! Always consider market manipulation games! Here are my thoughts.
The hype and its reasons: The November 2024 Bitcoin hype had no real world implications, there wasn’t a regulatory to support it, no major institutions moved to bitcoin, no major country started a new bitcoin reserve plan. The hype was community driven anticipating president Trump supporting crypto.
Was the hype justified? The anticipation that things go better was logical but no the hype was not justified! The jump was just too big to be justified only based on speculation of future without any promises.
Why it has happened? It is not easy to answer that completely due to lack of insider information but here are some reasons. Part of hype is definitely due to the hope of community that was excited, but of course nobody wanted to buy expensive. Here market manipulators came to play. Known as #whales! They can accumulate a large quantity and they can play the market.
How the whales manipulate? First of all they aren’t that rich. They’re getting rich by money of us, ordinary people, based on information they have and we don’t. How it works: they start trade amongst themselves with sharply increasing prices. This not only increases crypto price also increases stock price of crypto exchange companies. Then they are taking profit, both from crypto and stocks. Eg each whale may trade several thousands or even millions, but this doesn’t pump billions in the market. The actual people who pump billions in the market are me and you, ordinary people. We may put 1 to several thousands in the market, but we are a lot and the accumulation of wealth will be billions. Whales have their network and knowledge so, when they see there is no more pump from our side they take profit and shake the market and wait for another dip and another manipulation cycle.
What happens next? I believe in the absence of real world good news and support, there could be a dip that bounces bitcoin back to 70-80k. It means #altcoins will go down even further. Then that’s a good time to enter. Of course due to the lack of information we don’t know when the market cap is accurate to join the game. But we can have some speculation. On the other hand, if the real good news are in the way then it can explode and go to the roof and take profit, but based of what we observed now and in particular when the stock of major crypto companies don’t move forward positively, this is unlikely, the only hope we have is to see good news after inauguration day.
What to do next: in case of down time don’t get sad, don’t panic, keep your assets. It might take time but most likely eventually they will see up time. On the other hand downtime is a good opportunity to accumulate! If it goes up, enjoy! You can have strategies: selling when enough profit is taken, or waiting for longer time to gain even more!
What are your thought?
