In a post with trading ideas on $EOS we wrote that in the current market, any thin positive news feed can push the price up.
For example, you can look at the IOTA coin, which shot up +68% in a few hours amid news about the IOTA project launching a $100 million fund for the development of the ecosystem.
The information feed is quite thin, because such an amount for a cryptocurrency project is not particularly large. Considering that this amount is only 10% of the entire capitalization of this coin.
🤔 How does it work?
Everything is banal and simple.
Since the market is bullish, to increase the price of relatively low-liquid coins (alts), it is enough to release positive news so that the crowd runs to buy the coin. These purchases begin to push the price up.
Moreover, fuel for growth is added by lovers of leverage, which is liquidated due to growth and they have to close the position at the market price at a huge loss.
During bull markets, a news buying strategy works great. But it is important to understand that you will buy a coin after a significant growth, since here it is the insiders who earn the most, and only then the fastest trader.
🕯 Technical analysis
Fans of technical analysis can earn the most on such coins, since they make transactions when they see a pattern.
In this case, the coin $IOTA had several bullish patterns at once:
1️⃣ Breakout of the medium-term downward channel upward on November 3.
2️⃣ Breakout of long-term moving averages upward.
3️⃣ Formation of the Golden Cross pattern.
4️⃣ Formation of a local bullish flag.
5️⃣ Breakdown on a huge level of profile volume.
Let's be honest, we personally did not open a speculative position on this coin, since we already have several positions with an identical technical analysis pattern.
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