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Do we experience the start of a NEW BULL RUN right now? The whale secrets you want to know. This piece will examine the current situation and give you the best guess. Furthermore, it takes you out of the goldfish bowl mentality and shows you how Whales see the market.
My assumption: this article will be another epic piece and attract many readers. Too bad, I did not write it myself 😐 To be honest with you, it is a real gem, just like the signals group, that contributed to our website. These guys know A LOT of stuff and are working on really advanced solutions (like an auto trader connected to Binance & BitMEX that hedges positions automatically). They hired great traders, and their success rate skyrocketed, while being way too cheap in my opinion.
No need to bore you further with my appraisal, though. From the Author of “The Ripple Mafia“, we proudly present: “Whale Secrets Revealed: Cryptocurrency Bull Market Cycles”. Enjoy!
If you are an avid cryptocurrency investor, you are probably aware of the immense volatility in the cryptocurrency market. Imposing high-risk, but also extremely high-reward, opportunities, this asset class has lured massive waves of participants in the past and will most likely continue to do so in the future, alongside its advancement by society.
The cryptocurrency market, due to the low liquidity of most traded assets, is subject to extreme manipulation by big players, known as Whales. The whisper of manipulation often leads to the first thought: “conspiracy.” Not exactly. Manipulation is the outcome of a market that does not provide sufficient liquidity to participants. Manipulation in the markets does not only relate to “inside information” trading but also to having the power to move an asset's price in the desired direction. Now replace the word “power” with the word “money”. See where we are going?
Emotions in Trading
Keeping that in the back of our minds, let’s look at the cryptocurrency market and the cycles it experiences. We witness two major stages in the market: a bull cycle accompanied by euphoria, greed, and hope, and a bear cycle accompanied by fear, desperation, and loss of hope (and money). They are often associated with two main emotions from a psychological perspective: Fear and Greed. One of the Whale secrets the use vs. retail traders.
Identifying the two market cycles in crypto:
In order to create a new bull cycle, there are two things that must be taken care of.
1. Let it calm down – The Accumulation Phase
In between the bear and the bull cycle, the price must remain in a mild state, going up and down within a tight range. This, also known as consolidation, is the accumulation phase. This is the place where prices find a flat, leveling stage. Most small investors give up on their last positions because they lose hope and trust that the market will ever go up, and they leave the market in desperation and loss.
Thus, this is exactly what the bigger whale players in the market are waiting for. As such, they are aware of the market cycles and emotional psychology. Therefore, they are incrementally increasing their positions, buying up the small players’ positions. Then (buying into the fear) and stashing them for when the market mood changes. Whale secrets are here for you once again!
Moreover, at the lower end of the range, large portions of the assets are being bought to be sold later at higher prices. This is a phase that requires space and time due to inadequate liquidity in the market. Traders known as whales are buying the asset from retail traders who are selling their positions out of fear, as we are at the bottom of a bear cycle.
2. Creation of hype in the crypto space so that new money starts flowing in, which helps push the price to higher levels
Once the accumulation phase is over, a catalyst is needed to help professional traders push the price to higher levels. Most of the time, this is due to news of market manipulation. It’s either fake news or a major fundamental event that those traders have inside information about. The selection of the asset is not done randomly.
And it’s not always one asset…
It only takes one pair to create some interest in the space and motivate retail traders to FOMO in the game. Then the rest of the coins follow the path.
So it’s not the next bull run??
Now let’s get to the point! One of the other whale secrets is that every time a bull cycle happens. People tend to believe we are heading into a new bull run and new all-time highs. Well, not exactly. Those cycles are artificial and not backed by real money flowing into the cryptocurrency market. Do not compare those cycles with the 2017 run; that was backed by huge hype and news, and the price was organically driven higher. A legitimate bull run.
Back to our small artificial bull cycles in 2019. Focusing our attention only on BTC and the Major altcoins (ETH, XRP, TRX, ADA, LTC, EOS) since only these generate attention. So, in every cycle, we separate them into two categories.
The “First to pump” and the “Late to the party” coins. Their main difference is that the “Late to the party” coins are usually the largest capitalization coins, like BTC and ETH. The “First to pump” are mostly lower-capitalization coins from the major altcoins. Those coins are easier to move because less money is needed to initiate artificial pumps and attract retail traders' attention. Money starts flowing from inside the market, while new money from big players is accumulating the hardest-to-move assets (BTC & ETH).
Now let’s get practical with Whale Secrets…
I want to shift attention to a specific date in the market. The 6th of February. This is exactly the time when TRX reached almost the top of its bull phase. This coin is a “First to pump”, it started pumping since December. Whale secrets are shown here once again!
Let's focus again on February 6th.
Pay attention here to these Whale Secrets.
This is how you define an artificial bull run from an organic one. TRX level on 6th. Same as it was when Bitcoin was $ 7,000! Total Market Capitalization at this price was over $240 billion back then; now it is as low as $110 billion. Our conclusion:
This coin was pumped artificially, and there was no strong evidence to support that it was an organic move. TRX topped out on the 6th of February, and money flew from TRX to the next asset.
In this case Litecoin…
Why the selection of LTC?
News about the halving, plus its Market Cap, was low at that moment. Litecoin, as a major asset in the cryptocurrency space, combined with the fundamental event, is a coin that could generate significant FOMO among retail participants. Another whale secret is how to use FOMO/FUD.
After the 6th of February, the price of TRX started to stabilize, and LTC started pumping. Again, market cap is not growing; it's obvious that money is flowing from TRX (since TRX is dropping) to Litecoin.
Add one super bullish piece of news, like the halving event, and the perfect opportunity is here. Spread it across digital crypto media outlets, make people fear that they will miss the next train that’s right in front of their eyes! Small retail investors are now willing to move their Bitcoin holdings to Litecoin, hoping for quick, easy profits!
Let’s explain it again. People are FOMO (fear of missing out) buying into TRX while it's at its peak, so whales can unload their bags there and sell their holdings while moving on to the next asset, which is Litecoin. They have already accumulated Litecoin, and after the 6th, it’s time to pump. People seeing TRX then LTC growing in value are selling their Bitcoin for Litecoins. They essentially start moving Litecoin in value while selling Bitcoins.
Whale Secret: “Remember, for every seller there has to be a buyer.”
Who is buying those positions that are being sold?
Whales. Accumulation is happening now in BTC. They made money both from TRX and continued banking on Litecoin, but the safest and most important asset is still not moving. It’s the asset that will make them the most money since a big percentage of their portfolio is allocated to BTC. Bitcoin also needs huge amounts of money to move eventually. Another whale secret we shine a light on!
The next important date to shift our attention is 20 March. This is when Litecoin reached a local top, and ADA started moving. TRX is still dropping. No new money is flowing into the market; money flows from one asset to another. This run in both altcoins was a warning sign; the next coin to pump in the market signals that a major move is coming.
Finally, when ADA starts losing momentum, Bitcoin makes its move up, and on 3rd of April 2019, most altcoins have topped out. Money is moving away from altcoins and into the strongest asset, Bitcoin. Dominance starts rising, and those overvalued, overextended altcoins trap buyers while losing value each day.
What we need you to keep in mind from the whale secrets…
Thank you for reading our work this far.
We are putting countless hours into analyzing every small detail in the complex market that changes every day. Combined with our experience, we tried to explain in detail the process you need to follow to understand when the market is entering a new bull cycle.
It’s a different way to see the market, other than a plain chart. And it’s always handy when you have a different perspective. It’s how assets correlate with each other and with the price of Bitcoin. This is the real game, one being hidden behind closed doors, never revealed to the public.
Now you are one of the selected few insiders to witness and likely confirm the legitimacy of our analysis. This is too far away from drawing some lines, rectangles, and triangles, like 90% of the paid channels will proclaim to teach you and make you money. This game is hard and requires a deep understanding of market behavior and how money flows in and out.
It’s the only way to survive; there is no shortcut to success.
Our 3 quick trading tips:
Alpha Trade Zone
1- Never trade when you just wake up or before going to bed.
2- Never trade when you are tired.
3- When you make a decision, ask yourself, is it driven by FOMO/FUD or it is based on judgement.
Thank you for reading!
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