It happens exactly like this in the crypto market. When a rumor spreads, the market goes up, and when that thing actually happens, the market dips. A live example is recently when Jerome Powell announced the FED rate cut, we saw that the market started falling instead of going up. Wasn't that good news for the market? Yes, it was, but this how the market is being driven.
Why the Market Dumps on Positive News
There were two reasons for the recent market dump after the FED announcement. First, whales were manipulating, trying to spread fear in the market and force retailers to sell, even though the news was good. This is always the case with the whales that they want to manipulate the market.
Second, it is possible the market had already pumped earlier by insiders who knew the news before, and when the news became official, profit-taking started. To be honest, Whales and big institutions have insider news, they get the right news very early and take their action accordingly but it is the retailer who come to know about the news very late.
Yesterday, I was telling some of my friends, “Did you notice that after the FED announcement Bitcoin dumped, while it should have pumped?” I told them that very soon the reaction of the news will come back, and BTC will continue to make new all-time highs. The same happened and today at the time of writing "BTC" is standing on another all time high.
Now, those who invested with this understanding are in huge profit. BTC has made a new all-time high and more pump is expected. In the FED announcement, Jerome also said that another rate cut is expected this year.
That news will also have an effect, and I think BTC will very soon touch $135K. Whales and institution will keep on investing whereas retailers will keep of taking profits. When BTC reaches $135K, retailer think that market is bullish and is time for investment but in real whales are on the sell side.
In this market, if you want to survive, it is very important to understand two things. First, what whales want. If you understand whale movement, you will surely make profit. Second, you must have detailed knowledge about news when it comes and what effect it will have on the crypto market.
Focus on every news that affects the market. To understand such news, you need to stay active in the world of news. For example, recently Powell said in his speech that two FED rate cuts are expected this year. one is done, and one is still left. What it indicates? Very clear, market is bullish...
How to Profit from Rumors and News in Crypto
If you understand this news on time and invest, surely you will make profit. My experience in this market is that whenever news is positive, you should buy around 10 days before the announcement, and on the day of the news, you should sell your holding (this is how sell the news). This is exactly what whales do, and that is why the market dumps on positive news.
Whenever news is negative, you should sell your holding around 10 days before because the market will start dumping, and on the day of the announcement, you should buy (because whales will buy to manipulate the market). Because unexpectedly, the market will go up. When investors see the market going bullish, they will also start investing, and whales will slowly start selling, which will push the market down.
If you understand this point, I think you will not need any analysis or indicators. This is an easy way to earn from this market. If you truly understand these points, survival in this market will become easy.
Do you agree with me that you should buy on rumors and sell when news comes? What did you learn from my post? Share your opinion in the comment section so that the next post can be improved.
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