BTC Near Term Bullish Scenario
Many near-term metrics with BTC are bullish. If we can break and close on at least the daily 8500, we will likely make a run to 9250 area.
The weekends tend to have low volume, which means that larger players can move the market much more easily. For this reason, I may avoid smaller trades over the weekends in general AND I may not complete any assessment until the weekend is over.
Do big players really move the market? If so, why and how?
It's well accepted that in all large markets (and many not-so-large markets) that large players need to create volatility and retail liquidity in order to fill and exit their orders. Larger players rely on retail for their exits, entries, and --most imporantly--their profits.
Many think that the DOW being pushed up is a way to get retail involved so the large players can exit. Retail has the ability to move quickly. Retail can enter and scalp a quick percentage and can risk buying tops. Retail is also often times emotional and will fomo/panic. These are not options for large money. This is why institutional capital inflows and outflows occur over time.
Think of this this way: You have 5 BTC worth of a small alt coin, but there are only .5 BTC in buy orders. Do you market sell? No. You may market sell smaller amounts so as not to crush the price. This may take hours.
BTC is large enough to trade millions, but liquidity can be in short supply for people with 10's of millions of dollars. TRADING these amounts requires participation of retail in order to generate profits.
The big players have algorithms that will create fake buy orders (spoofing). They will also buy and sell to themselves just enough to get retail excited and move the price with minor or no losses (wash trading). This is done in any good sized market. It is absolutely done with BTC ESPECIALLY in leveraged markets. Since BTC has been low and ranging and alts have been draining, the way for large players to make profits with BTC has been in leveraged markets.
These algos and otherwise-generated large moves can cause drastic deviations from what is normally technically predictable in the BTC market--ESPECIALLY during weekends when volume is low.
It is for this reason that weekends are tricky for trading on smaller timeframes.
**the above statements are my opinion and intended for entertainment and educational purposes only. The above info is NOT not intended as investment advice or financial advice. Please consult a licensed professional before risking your capital as this can result in a financial loss**
The weekends tend to have low volume, which means that larger players can move the market much more easily. For this reason, I may avoid smaller trades over the weekends in general AND I may not complete any assessment until the weekend is over.
Do big players really move the market? If so, why and how?
It's well accepted that in all large markets (and many not-so-large markets) that large players need to create volatility and retail liquidity in order to fill and exit their orders. Larger players rely on retail for their exits, entries, and --most imporantly--their profits.
Many think that the DOW being pushed up is a way to get retail involved so the large players can exit. Retail has the ability to move quickly. Retail can enter and scalp a quick percentage and can risk buying tops. Retail is also often times emotional and will fomo/panic. These are not options for large money. This is why institutional capital inflows and outflows occur over time.
Think of this this way: You have 5 BTC worth of a small alt coin, but there are only .5 BTC in buy orders. Do you market sell? No. You may market sell smaller amounts so as not to crush the price. This may take hours.
BTC is large enough to trade millions, but liquidity can be in short supply for people with 10's of millions of dollars. TRADING these amounts requires participation of retail in order to generate profits.
The big players have algorithms that will create fake buy orders (spoofing). They will also buy and sell to themselves just enough to get retail excited and move the price with minor or no losses (wash trading). This is done in any good sized market. It is absolutely done with BTC ESPECIALLY in leveraged markets. Since BTC has been low and ranging and alts have been draining, the way for large players to make profits with BTC has been in leveraged markets.
These algos and otherwise-generated large moves can cause drastic deviations from what is normally technically predictable in the BTC market--ESPECIALLY during weekends when volume is low.
It is for this reason that weekends are tricky for trading on smaller timeframes.
**the above statements are my opinion and intended for entertainment and educational purposes only. The above info is NOT not intended as investment advice or financial advice. Please consult a licensed professional before risking your capital as this can result in a financial loss**
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