Bitcoin Crash: Market Makers’ Strategies and Future Prospects
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Cryptocurrency market volatility is nothing new. However, the sudden drop in the price of Bitcoin (BTC) has caused concern among investors. Why is this happening? To get the answer, we need to understand the strategies of market makers and their psychology.
Market Makers and Their Plans
Market makers know that there are two types of investors right now:
- Long-term holders: Those who bought Bitcoin for $69,000 two years ago and are still holding on.
- Wave surfers: Those who make quick decisions and trade for small profits when they see market fluctuations.
The main goal of market makers is to extract profits from these two types of investors. To do this, they artificially cause the price to fall, which creates panic in the market.
How do market makers work?
Market makers create a big price drop, forcing long-term holders and wave surfers to sell their Bitcoin.
- Goal: To buy Bitcoin at a low price and then sell it at a high price.
- When these investors re-enter the market after being hit by the price, they have to buy Bitcoin at a higher price.
In this way, market makers continuously increase their profits, while ordinary investors repeatedly suffer losses.
Market strategy like a game of musical chairs
This whole process can be compared to a game of musical chairs. The difference is that market makers know when the music will stop. Ordinary investors do not understand this, so they are at risk of losing.
Price Trend Analysis
There are two criteria for observing this price movement:
Price Drop:
If Bitcoin does not return to its previous level, such as $67,481 at the beginning of this pump (November 5), then this indicates that the price drop is planned.Relationship between BTC and Altcoins:
When the price of Bitcoin falls faster than altcoins, it indicates that a reversal in the market is imminent.
Currently, Bitcoin has lost 7.99% from its highest price (ATH), while most altcoins have lost between 15-20%. This indicates that the market may fall further, but if this gap narrows, we may see a price rise.
Future Prospects
According to analysts, Bitcoin's ultimate target could be between $100,000 and $110,000. However, to reach this milestone, investors will need to plan for market fluctuations.
The current market decline is not an ordinary occurrence; it is the result of market makers' strategies. They artificially create price fluctuations to make a profit. Investors should patiently analyze the market situation and avoid panic selling.
There is no substitute for a long-term view and proper planning to succeed in the market.