UPTOBER IS COMING In the past 10 years, there have been 8 years where the market dropped sharply in September. And coincidentally, there have been 8 years where the market increased sharply in October. Just a coincidence? Having been in crypto for a long time, I gradually realized that there is not only a cycle every 4 years but also 2 other smaller, very noticeable cycles, usually taking place within a year. That is, the market has a quite positive price reaction around March - April and October - November every year (time can move around this time threshold). There are many reasons why this phenomenon occurs as follows:
Profit taking from retail investors and investment funds
At the end of the year (or Western New Year, New Year), people tend to take profits, summarize the past year, profit and loss, and save money to celebrate Tet.
At the investment fund level: The end of the year is the time to take profits and summarize the fourth quarter and year. Market makers often push prices, aiming to sell assets at the best price with high liquidity. This leads to price increases in October and November. And of course, profit-taking pressure leads to price drops before the end of the year during the New Year and Lunar New Year holidays by MM groups in European financial markets. Asia and Europe.
Then, when people enter a new financial year, the downtrend will give way to an uptrend again, so the market is usually greener after the Tet holiday. At this time, investors tend to buy back, as well as Market Makers will group stocks to make prices for a new increase. Furthermore, if you know, many companies will implement a buy back strategy, not only in crypto but also in the stock market. All of this gives the market a new upward momentum in the period of March and April every year.
Investor psychology & price manipulation MM
According to statistics, September is mostly a bearish month for BTC, and October is one of the bullish months for BTC. If you look at it from another perspective, September is a very good month to buy or#DCAto receive sweet results in upcoming October. This is almost the direction of the market maker that shapes investor psychology. That is investor psychology, it will never change, it will always repeat.
Price fluctuations over the years of BTC
What happens when the market grows?
Although these price increases often take place quite quickly and the growth rate is not large, if you are in the market full time, this is also a valuable opportunity to earn more profit while the market has not yet reached sufficient conditions. growth conditions.
What will happen when the market grows in these 2 rising waves? To pull a big wave up from a daily frame or more, there must be a certain trend or narrative that attracts cash flow into the market. That's what always happens because the#cryptomarket is finance drawn from the technology story.