#kryptowaluty #bitcoin - Dziś długa czytanka ale obiecuję, że warto. #taniejniebedzie ! 6. Distribution & Alt-Season How do we define “alt-season?” More importantly, how can alt-season be used as a weapon? Alt-season happens when altcoins have retraced a significant percentage in price, but this is merely an observation that could be invalidated if alts were to increase in price multi-fold after consolidation at a high.
Altcoins, especially the smaller caps, are very illiquid and can increase in price with relatively low effort and capital if pushed by wealthy market participants. (...) Now, try to think like a wealthy market participant who needs liquidity to enter and exit large market positions. What could help you to distribute a great number of BTC?The answer is simple — demand for BTC. There are various avenues one could think of to create this demand. • Positive sentiment and strong price action • Demand for other assets, which require bitcoin to be bought • Alt-season to create demand for bitcoin Like a magician who tricks you and makes you look the wrong way, alt-season can be used to draw our attention in one direction, while it goes unnoticed that major market participants are quietly offoading their bitcoins under our noses. As BTC goes through high velocity price drops and surges, altcoins often bleed heavily. But if you look past the curtains, you’ll notice that most alt-seasons happen during bitcoin distribution phases. In the reverse context, when distribution has climaxed and the demand for bitcoin is satisfied (meaning that bitcoins were swapped for altcoins), a high supply of bitcoin results in cheaper bitcoin prices for the same people who distributed them. So, aside from market cycles in alts, sometimes altcoin price action is a weapon used to create demand and subsequent supply of bitcoin at favorable rates to whomever is interested in accumulating and distributing it. On a side note, let’s make one thing clear. The goal of a whale is to accumulate large positions and distribute them later on. There are myriad tools used by whales, including a psychological framework that you’ve no doubt experienced called FUD — Fear, Uncertainty, and Doubt. Market bottoms see FUD while market tops will see euphoria. During FUD, there will be negative news predicting death spirals, and during euphoria, news outlets will promise you the moon. Keep these things in mind as they have loads of relevance to the way people react to changing market conditions. Altcoins are more easily moved in price than BTC because of their smaller market caps and can create a demand for bitcoin. Besides this, they’re often used as a distraction when bitcoin’s price is dropping. There are a few scenarios that play out when whales use altcoins as weapons, but I’ve identified one cycle in particular: 1. Whales accumulate large bitcoin positions at a bottom while influencing sentiment through media outlets. The more FUD, the better. 2. They then pump altcoins. As market participants start to FOMO, they will have to buy bitcoin, which the whale is deliberately, and slowly, selling to them. Scarcity of BTC drives its price. 3. As FOMO increases and BTC is reaching its highs, BTC enters its distribution phase. Euphoria-laden gold diggers keep flocking to alts — and those very alts require bitcoin to be bought. 4. Alts hold value versus USD and BTC, and it goes unnoticed that the whales are exiting the market at increasing speed. The reaction of the alt dump is slowed. 5. Bitcoin finds a bottom and this is where whales re-enter their bitcoin positions. Alts lose their momentum and start dropping, converting alts back to BTC, thus creating demand for BTC that is already in accumulation by the whales. 6. Bitcoin goes on a rally and participants realize the gains are to be made on it. Alts drop further. 7. Whales start accumulating these alts and prepare the next distribution cycle for bitcoin. 8. A new massive pump for bitcoin occurs and alt-season is nearly underway so the whales can distribute that bitcoin again. 9. The alt-season pump occurs just before the high of bitcoin is reached, and distribution of bitcoins happen. 10. Bitcoin gets accumulated again on a bottom and is then pumped as altcoin holders exit their alts as theystart dropping in value. 11. This is where the whale starts accumulating the alts again to prepare a pump for the next bitcoin distribution.
6. Distribution & Alt-Season
How do we define “alt-season?” More importantly, how can alt-season be used as a weapon? Alt-season happens when altcoins have retraced a significant percentage in price, but this is merely an observation that could be invalidated if alts were to increase in price multi-fold after consolidation at a high.
Altcoins, especially the smaller caps, are very illiquid and can increase in price with relatively low effort and capital if pushed by wealthy market participants. (...) Now, try to think like a wealthy
market participant who needs liquidity to enter and exit large market positions.
What could help you to distribute a great number of BTC?The answer is simple — demand for BTC. There are various avenues one could think of to create this demand.
• Positive sentiment and strong price action
• Demand for other assets, which require bitcoin to be bought
• Alt-season to create demand for bitcoin
Like a magician who tricks you and makes you look the wrong way, alt-season can be used to draw our attention in one direction, while it goes unnoticed that major market participants are quietly offoading their bitcoins under our noses.
As BTC goes through high velocity price drops and surges, altcoins often bleed heavily. But if you look past the curtains, you’ll notice that most alt-seasons happen during bitcoin distribution phases. In the reverse context, when distribution has climaxed and the demand for bitcoin is satisfied (meaning that bitcoins were swapped for altcoins), a high supply of bitcoin results in cheaper bitcoin prices for the same people who distributed them.
So, aside from market cycles in alts, sometimes altcoin price action is a weapon used to create demand and subsequent supply of bitcoin at favorable rates to whomever is interested in accumulating and distributing it.
On a side note, let’s make one thing clear. The goal of a whale is to accumulate large positions and distribute them later on. There are myriad tools used by whales, including a psychological framework that you’ve no doubt experienced called FUD — Fear, Uncertainty, and Doubt. Market bottoms see FUD while market tops will see euphoria. During FUD, there will be negative news predicting death spirals, and during euphoria, news outlets will promise you the moon. Keep these things in mind as they have loads of relevance to the way people react to changing market conditions.
Altcoins are more easily moved in price than BTC because of their smaller market caps and can create a demand for bitcoin. Besides this, they’re often used as a distraction when bitcoin’s price is dropping. There are a few scenarios that play out when whales use altcoins as weapons, but I’ve identified one cycle in particular:
1. Whales accumulate large bitcoin positions at a bottom while influencing sentiment through media outlets. The more FUD, the better.
2. They then pump altcoins. As market participants start to FOMO, they will have to buy bitcoin, which the whale is deliberately, and slowly, selling to them. Scarcity of BTC drives its price.
3. As FOMO increases and BTC is reaching its highs, BTC enters its distribution phase. Euphoria-laden gold diggers keep flocking to alts — and those very alts require bitcoin to be bought.
4. Alts hold value versus USD and BTC, and it goes unnoticed that the whales are exiting the market at increasing speed. The reaction of the alt dump is slowed.
5. Bitcoin finds a bottom and this is where whales re-enter their bitcoin positions. Alts lose their momentum and start dropping, converting alts back to BTC, thus creating demand for BTC that is already in accumulation by the whales.
6. Bitcoin goes on a rally and participants realize the gains are to be made on it. Alts drop further.
7. Whales start accumulating these alts and prepare the next distribution cycle for bitcoin.
8. A new massive pump for bitcoin occurs and alt-season is nearly underway so the whales can distribute that bitcoin again.
9. The alt-season pump occurs just before the high of bitcoin is reached, and distribution of bitcoins happen.
10. Bitcoin gets accumulated again on a bottom and is then pumped as altcoin holders exit their alts as theystart dropping in value.
11. This is where the whale starts accumulating the alts again to prepare a pump for the next bitcoin distribution.