The arrival of new funds that flow into the cryptocurrency market is often interpreted as a positive sign by market participants. However, this is only a smokescreen made out of thin air by market makers, who are in complete control of prices. These characters are, behind the scene, creating a scenario where the prices of cryptocurrencies fall dramatically.
This is a déjà vu situation, as it was forecasted some weeks ago by some very sharp and insightful people with deep knowledge of how the game works. The present altcoin rally is not something that traders can take advantage of; rather, it is a trap that has been planned out to snare naïve participants by means of delivering a heavy market dump right after. Instead of doing so, one can synchronize with the downside to have a more rational approach and at the same time, acquire the market’s entire liquidity rather than having a short term profit from several altcoins. This is not only a shift, but it also marks the beginning of a larger and more destructive plan.
Market makers have the greatest potential to operate successful manipulations of public opinion. For instance, the recent sturdy uptick in altcoin prices, which was mainly bought with new money, is a fairy tale which the market eagerly tries to believe. As retail traders look for quick profits, they excitedly enter the market in full force with the conviction that the upward movement will continue. However, this is exactly the situation that market makers eagerly anticipate. The promotion of altcoins to higher levels is not the reward of traders but, on the contrary, it is the positioning of them on the verge of a collapse. The resources they receive are what allow them to manipulate the prices and create the right circumstances for people to want to sell en masse. This is when the market will experience a domino effect of liquidations, where all leveraged positions will be erased and the retail traders will find themselves in a panic state.
For several weeks, this kind of situation has been on the cards. Those specialists who are following market maker behavior have anticipated just this kind of outcome: a managed escalation followed by a horrible crash. The current market factors, which are the rising altcoin prices, the increasing trading volumes, and the growing retail enthusiasm, are typical signs of a liquidity grab. Greed is what market makers are experts in exploiting, and the altcoin rally is their hook. The moment that there are enough traders who have taken long positions, the rug will be taken away from under them, causing a quick fall in the whole market. It is not guessing; firstly, it is a type and secondly, the thing it is based on is the way that markets are controlled behind the scene.
The smart move is to bet on a bearish outcome. It is true that one could probably make some money by pursuing a few altcoins, but this would be a risky strategy with very limited upside for a short time only. Therefore, instead of this, one could decide to trade according to the market and expect the market to eventually fall. Thus, a trader gets the chance to make money when the market is going down, which is quite an elegant way of turning the situation to his advantage. When the market makers carry out their dump, the fall will not only affect one or two coins but it will be distributed among the whole ecosystem. These smart traders can grab the cash flow by planning for such a move, because that is when the flood of panic selling will take place. Short selling with great timing can make market makers’ trick work in your favour.
Here, the point is not about fear mongering, but understanding the game. Market makers do not act haphazardly; on the contrary, their actions are thought out and aimed at making the most of the profit at the expense of retail traders. At this very moment the liquidity is rising and it is the market makers’ setup while the altcoin pump is their hook. Traders who see this can get out of the way and make the right move. Market is like a chess game and market makers are always three moves ahead.
Key Points:
Liquidity as Bait: A new liquidity is driving an altcoin rally, but it is a market makers' trick, not a bullish trend.
Calculated Trap: Market makers are raising altcoin prices to attract retail traders long positions and then, they will dump the market.
Predicted Move: This situation has been predicted two weeks ago, as prices and volumes were going up, signaling a liquidity grab.
Downside Strategy: It is wiser to agree with the anticipated market drop than to go after short term altcoin gains, as the dump will spread to the entire market.
Market Makers’ Game: The rally is a staged move to take advantage of trader greed, with a rapid drawdown planned to clear leveraged positions.
Opportunity in the Dump: Clever traders can profit from the overall market decline by timing short positions to take liquidity during the panic sell off.