Volume is so low
And it has been for a while now. As a matter of fact, traders have been calling a bottom for this very reason. When volume drops, it basically signals that less and less people are willing to sell and have adopted the HODL mentality for better or worse.
This of course has led to us having a somewhat stable valuation for the better part of a month. Some even joking that the real stable token is BTC, which of course is just hyperbole, but I understand where they are coming from, since we've been very spoiled with the green candles in the past.
I for one, think that this sideways action is a great sign myself, and I've been paying close attention to the drop in the volume every single day. This of course is not financial advice, but It seems like now is probably the best time to be buying in, at least in 2018, but I digress.
What about the Whales?
Yes, the reason for me writing this today, the new whales. What am I talking about you may ask? - Well, it's not too complicated to explain, but allow me to talk about OTC first, which is part of the equation here.
OTC, Over the Counter trading has existed for the longest of times, not only in crypto of course which is relatively new, but in the traditional stock markets as well. The reason for their existence are plenty, but the main reason why they are useful to markets has to do with the availability of assets for sale. In other words, it's one thing to buy say 10 BTC, which is the focal point of this post, and a whole different one to be buying 10,000 BTC in one sitting.
Imagine what would happen to an exchange like Bittrex, if someone would enter on the books such purchase. In one word: Insanity. This is to say that when Institutional investors make their gigantic purchases they do not go through the usual routes, the ones you and I know about, they make their purchases via OTC Markets.
And yes, unreflected on coinmarketcap or other websites you and I might normally use to calculate volumes in trading, new wallets have been emerging.
A quick glance
So this part is somewhat speculative but I think the argument holds enough water. Visiting the website I just shared above you can verify these addresses as I have and see that the information is correct. I always say that practicing skepticism is good, so please, do not take my words as written in stone.
This however shows some wallets that have moved 13,000 + tokens and as I said, this is verifiable. Now, in case you don't have a calculator at hand, or are feeling too lazy to do some math, the number I want you to pay attention to is 854 million, at the bottom right.
Now, let me ask you this. What retail investor has this amount of cash? Let's not even talk about all wallets, since of course they could all belong to different people, but even if we look at just one of them. What Joe or Jane has this stuffed under the mattress?
Here is what I'm trying to say in one line: While we've been seeing the volume drop off every single day, some institutions seems to have been buying a lot of BTC on the OTC markets very quietly, positioning themselves for the next bull run.
Moon?
Of course moon, it's obvious to me and it should be obvious to anyone who is looking at the evidence here. When? that is a whole different matter. I suspect the play is as follows:
- Keep FUD articles coming out, maintaining the price low
- Cost Average the purchases every day
- Time it with market sentiment
- When the OTC buys are done, call the Media so they can change their tune
- Let this move as high as it can go, possibly past 20K
- Break everyone's ankles again, dumping on the people who naively think they will become rich
Why am I saying this? Because this is precisely how these markets get manipulated and this should not be news to absolutely anyone. As a matter of fact, understanding how the manipulation works, at least to me, gives me some tranquility. I know what I have to face, and I'm ready (i think so at least).
Conclusion
Be patient, the time is coming but more importantly don't forget a very important rule of surviving these markets.
Don't get greedy!
