There are only 2 things certain in life
- That we can be certain of nothing
- And that Hive pumps at 00:00 UTC
The chart speaks clearly and there is no question:
So how do we profit from this?
Since you are probably not a whale holding millions of $ or Hive we simply have to ride these waves. Luckily for us, the whales are playing with open cards. I have not seen such a consistent pattern for any other coin (if you know, please tell me) and while it would be certianly nice to know why this is the case, it is easier to just work with what we have.
There are many ways to take advantage of this and some are more sophisticated than others.
Plan ahead
Keep a part of your Hive liquid. If it is all staked/powered up you will not be able to take advantage of this. I am currently powering down around 30% of my stake for this reason. What we do in the less sophisticated version is to simply apprehend the price spike. In other words, be prepared to sell Hive into the pump. As you can see from the pumps, they almost always go back to where they started from. 30% to 50% corrections can and do happen... Don't be fooled that it will not happen as you will get dumped on your position (yes, in some rare cases price does keep going higher, but as a rule of thumb we will see at least a 20% correction).
- Only sell into the pump and not after price has already crashed by more than 10-20% to play it safe.
- Identify the real pumps from the volume traded; they will have bigger spikes in the chart. For example, on Binance that will be bigger than 30M.
- The best way to do this is to set up sell orders to not miss them (unless you want to stay awake if it is not in your time zone), but be sure to set them quite high like 30%+. I would also recommend to place several orders to be sure to catch the pump.
- Update these sell orders regularly. They are no use if they are old, so update them essentially every day.
- Set up buy orders after the pump. Be sure to buy pack at lower prices by starting buy backs at 10% (conservative) and ladder them all the way down to 30%-40% (50% is a bit extreme).
- If you like risks, then play in the futures market. I would set up longs shortly before 00:00 UTC and see if the pumps transpires. Be careful with leverage. Cancel them if the pump does not occur.
A more sophisticated way would be to get a bot up and running (for spot and perpetual). With such a consistent pattern, it seems that the odds are stacked in ones favor. Since I do not have any experience in this regard, I cannot really speak about it, but I suspect it could be highly profitable. The whales are surely doing this already.
Conclusion
The more people actually start to sell into these pumps and set up buys at lower prices the more stable the market should become. Since we are dealing with $1B+ pumps at times, this is almost a futile effort, but at least we can make some easy money. Be prepared, the next pump is not very far away.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
Check out the Love The Clouds Community if you share the love for clouds!