Whale Manipulations in the Crypto Market 🐋
9/10 will lose all their funds after a bull run ends. But the 1% who understand these manipulations will make millions. Here's what whales hide from you🧵👇
➮ Price manipulations happen daily in the crypto market.
☩ Sometimes within a day to profit from a small group, other times over months to take money from the entire market.
➮ Today I'll tell you about whale manipulations:
☩ Why they happen and how not to lose all your money by falling into their trap.
☩ This info is crucial; hope it helps you avoid being deceived by whales.
➮ Example: Recent $ETH ETF Approval.
☩ After the news, the price soared by almost 30% in a day.
☩ Crowd FOMOed and bought ETH, but whales bought nothing and cashed out on ordinary people.
➮ To profit, whales need to sell their accumulated coins to many people and to accumulate, people need to sell their assets.
☩ They play on two emotions: FEAR & GREED.
➮ Strategies whales use:
1. Stop Loss Hunting
- Whales push the price to key support & resistance levels to liquidate regular traders' stop losses.
2. Fair Value Gap (FVG)
- FVG forms during strong pumps or dumps and acts as support and resistance. During corrections, prices rebound to the first FVG.
3. 3-Drive Pattern
- Indicates reversals; similar to Stop Hunt with an additional retracement. Effective with bearish patterns like BTC in 2021.
4. Range Manipulation
- Whales keep prices in tight ranges to shake out the crowd, often reversing after breaking key levels.
5. News Manipulation
- Prices rise in anticipation of news but drop 90% of the time when news is released.
➮ Rules to protect against manipulations:
☩ Set your stop just beyond the level where a Stop Hunt already happened.
☩ Don't FOMO buy right after a major dip if the price is in FVG.
☩ Support or resistance levels often break after 5 touches.
☩ Avoid buying right after big pumps.
