Any market is, first of all, manipulation. It doesn’t matter whether it’s grocery, stock, clothing or cryptocurrency.
Let me explain in simple words how the market works. In the financial market, be it cryptocurrency or stocks, there are stages:
Accumulation – Growth – Distribution – Fall – Accumulation – Growth –..., well, you understand the principle 😃
These stages are divided into “bearish” (fall, accumulation) and “bullish” (growth, distribution) markets.
The task of a large player (fund, private investor or whale) is to buy at the accumulation stage and sell off at the distribution stage. It seems that everything is simple: buy at the bottom, sell at the high. But in reality everything is more complicated due to manipulation.
Have you often noticed that everyone needs a coin when it grows? For example, $APT It entered the market at $7 and gradually fell to $2.9. While he was falling, no one needed him. Many smart people shouted that this was another scam. In parallel with this, the negative news background reinforced the fall: the media, bloggers, experts and other husks were shouting that it would fall to a dollar, and then they, the smart ones, would buy it.
But then the “impossible” happened: APT rose to $6 in a couple of days, then to $10. And then all the same geniuses of thought began to say that, probably, “if the level is maintained” by some ephemeral one, then you need to buy it, because APT is cool. The crowd began to look closely and slowly buy. And then he jumped to $17-20, and then - on! - all in one voice: “APT will cost $500!” Hamsters immediately bought it from $17 to $20. Of course, condemnation began in the chats: APT was about to cost $100, and then $500. But it gradually fell to about $5 in the fall and rose again to $19, now trading at $9. (By the way, I marked the levels of $9.5 and below - this is an area of interest based on the current situation) And here again no one needs him, scam and all that.
This is a local example, but globally everything is the same, only at a greater distance and with a greater range.
What makes the “bear” change to “bull”? Because new money enters the market, which goes into projects and is comparable to the current capitalization. This money is distributed between projects, growth begins, projects begin to develop, the media smoothly launches the background when the price is already at interesting levels. Ordinary market participants begin to notice this, and the most attentive ones buy, and not the attentive ones - when the media is already launching the idea of “lunaaaa” in full force. When there is only positivity around, and the indicator of fear and greed is greed, the very “brakes” begin to fly in and buy off the highs. Thus, what I wrote was obvious at the beginning is reproduced, exactly the opposite: they buy off the distribution and merge it until accumulation. 😀
The market is manipulation in its purest form. They sell you pants made from the same materials with a huge markup, because you have been given the idea that it’s cool, just like everything else.
Think about it and start learning the basics of the market. I described everything in general terms, but there are still a lot of points: local and global picture, individual projects and much more that needs to be studied, gradually delving into the meaning.