Is It Time for a New Cryptocurrency Trading Strategy?

The fact that we've been in an extended bear market has gotten me to the point where I've come to accept that the market that we thought we were participating in isn't exactly what we may have thought it was.  More specifically, the way it appears the market moves isn't clearly natural as a free market would or if based on broader user adoption.

As market participants, I get the sense that we want to believe that bitcoin and, to a lesser degree, altcoins move by pure market dynamics fueled by more people making more trades.  I considered the number of accounts that existed on the exchanges and I was able to hold onto the belief of a natural market that could be charted.  But it seems that we're seeing too much evidence of market manipulation for me to believe in simple market dynamics and pure TA.

At the same time, I'm not a fan of conspiracy theory nor FUD as a basis for trading.  Yes, there is a popular phrase in investing and trading of "Buy the rumor and sell the news", but know the difference is the key to that approach. 

Recently, I ran across a couple articles that make a strong case and present sensible evidence that cryptocurrency, as a market, is heavily influenced by manipulation and is not acting on pure market dynamics

I have my reasons that make me an advocate of cryptocurrencies, and you may have yours.  But, as traders, I think I'm safe in assuming that we share common goals of making profits and growing our income.  So, as traders, we must have awareness and understanding of the market we trade in and plan accordingly and realistically.

Lets begin by looking at the current market and some of the plausible reasons we're in this extended bear market.  The article in the shared link does a good job at exploring the current market and makes some strong observations.

Chief among the observations is that we need to recognize that we're actually NOT a bear market, it's a manipulated market that is being artificially depressed, currently, for the benefit of un-named manipulators.  Institutional money?  I cannot say with any certainty that it's just institutional money.  However, for myself, I was very uncomfortable with the idea of institutional money entering into crypto.  However, I accepted the argument by some that it was the large institutional investors that would take crypto, mostly bitcoin, to the next level.  Perhaps that's still possible, but I doubt that will happen as a natural market dynamic.  It will happen according to their schedule.  This is likely to leave the individual investor in the dark and lost in the wilderness in most cases.

The evidence for market manipulation is pretty strong and this Medium post goes to great depth in making the case for recognizing this manipulation.  It's a long read, but I think it's well worth it for any serious trader.

One thing the post points out is that the manipulation may have started well before the launch of futures trading that I had viewed with suspicion.  The idea that the December rally was not actually a rally driven by a robust community, but rather, an orchestrated maneuver by these manipulators. If that is indeed the case, and the evidence is compelling, it makes me a bit disappointed.

So Where Does That Leave the Individual Trader?

So now that we have the awareness and insights of this possible manipulation of cryptocurrencies, primarily bitcoin, what do we do as individual traders?

That's a question I'm exploring for my own trading and I don't have a clear response, yet.  But, in the words of G.I Joe, "knowing is half the battle".  Knowing is all well and good, but that doesn't help us much in knowing what to do as a trader.

What will be my/our strategy that takes advantage of and leverages what the manipulators are doing?

I'm approaching this with the belief that making money and growing holdings remains the purpose for the manipulation. 

"BTFD" for sure, but what else?

I would encourage us, as a community of individual traders to consider a more aggressive path towards our investing and take a more tactical approach.  It's either us against the manipulators or us with the manipulators.  But only one is a path to success for the foreseeable future.




Comments

  1. Latest Cryptocurrency News and Articles. Cryptocurrency technology Innovations, Analysis and Interviews from Industry Experts Cryptocurrency News - Fintech News and Articles on Cryptocurrency Latest Cryptocurrency News and Articles on Bitcoin, Altcoins and Crypto Market. Cryptocurrency Innovations, Analysis and Interviews from Industry Experts

    ReplyDelete
  2. crypto-waehrung | Blockchain, Bitcoins, Wallets, Kryptowährung, Kryptowaehrung Ico and all information about cryptocurrencies.

    ReplyDelete
  3. We are number one in bitcoin currency world. It's all about cryptocurrency for you. BRN | Bitcoin Radio Network | Live Video 24×7 We host the radio show and live video program on your network and you will get real-time cryptocurrency update and news that happening every single second in the cryptocurrency world. So, stay with us for more.

    ReplyDelete
  4. Bit2Me is an excellent platform to buy and sell bitcoins and other cryptocurrencies Bit2Me - Buy and sell cryptocurrencies in seconds such as Ethereum, Litecoin, Dash or Bitcoin Cash. learn what is and how Bitcoin works In summary, the service is fast, easy and safe. Great customer service in multiple languages.

    ReplyDelete
  5. Btc gamble pro is a professional gamble strategy that use artificial intelligence to make the users always win or break even playing BTC Dice Game or Roulette. BTC Gamble Pro, roulette and BTC dice game strategy This is a new a revolutionary way to make bitcoin/money online. The strategy is provide to the clients using a platform that tell then how to bet, the client press a win or loss button and the dashboard tell them next bets. Profit are 100% guarantee and we have a 15 days free trial.

    ReplyDelete
  6. SIKA is a revolutionary new way to use crypto-money, Sika Coin - First Offline Crypto Currency ROI 250% Derived from the Italian word ‘zicca’, Sikka refers to the coin die creates money in physical form. The SIKA objective is to make cryptocurrency in physical form through plastic cards. Fully developed, SIKA would power cryptocurrency transactions on plastic debit/credit cards in a seamless manner.

    ReplyDelete
  7. Earn 3.5% daily profit with Bitcoin Automated Trading, Free bitcoin daily 100 SAT, Bitcoin Automated Trading | Daily 3.5% Income Google 2FA secure, Instant daily payouts, 10% referral income Daily.

    ReplyDelete
  8. BITRUS is an exchange platform that provides users with a friendly interface for trading crypto-fiat and crypto-crypto in a centralized location. ♦BITRUS 👉 https://bitrus.com/ Bitrus, with its own coin focused on trading fees payments, offers the latest technology with the most advanced cybersecurity for all concerned.

    ReplyDelete
  9. Set Bitcoin price alerts ►► Bitcoin (BTC) Alerts, News and Price and get free Bitcoin price alerts live by ✉ email and text's ✉

    ReplyDelete
  10. Manage YOUR digital and fiat MONEY with complete flexibility http://awax.co.uk/awax groundbreaking transaction times and significantly lower fees than today's alternatives. Register to a FREE webinar to learn how.

    ReplyDelete
  11. No Risk No Fun | TRY YOUR LUCK! CHECK OUT YOUR LUCK NOW! https://www.no-risk-no-fun.club/ We earn with every round. This is the simple reason why we are here to stay and make sure that the winner always gets his money.No-risk-no-fun as the name says.

    ReplyDelete
  12. NULS - Null Is Nothing, Nuls Is Everything. ADAPTABLE BLOCKCHAIN FOR ENTERPRISE SOLUTIONS http://www.mycryptobuddy.co.uk/ starting with as little as 💰 40 of BTC.

    ReplyDelete
  13. Gibraltar Crypto Currency (QRG),opens at $22.00 on the QRG on the IDCM.io Exchange 👉 Gibraltar Crypto Currency

    #QRG_Stamps #GibraltarCryptoCurrency

    ReplyDelete
  14. There has never been a better time in history to invest in cryptocurrency and make extraordinary profits.
    Even if you missed the first huge Bitcoin run up, you still have the chance to make it big.
    While everyone else is busy dumping their coins, these smart investors are taking advantage of the old adage: "Buy low and sell high!"
    What if it were that easy to pick the right coin at the right time?
    Yesterday, this video went viral.
    And for good reason...
    Watch it now to see how they're pulling it off:
    http://clickmeterlink.com/cryptoinvestors

    ReplyDelete
  15. Asia-Mining | Largest Bitcoin Cloud Mining Company in Asia. https://asia-mining.com/ asia-mining is an Officially registered company Singapore, our mining farm is located, New Delhi, Jakarta, and Manila. We use, Nvidia gtx 1080 ti, Nvidia RTX 2080 ti and at first In history cloud mining ASICminer Zeon 180K. I wish you a happy mining.

    ReplyDelete
  16. There has never been a better time in history to invest in cryptocurrency and make extraordinary profits.

    Even if you missed the first huge Bitcoin run up, you still have the chance to make it big.

    While everyone else is busy dumping their coins, these smart investors are taking advantage of the old adage: "Buy low and sell high!"

    What if it were that easy to pick the right coin at the right time?

    Yesterday, this video went viral.

    And for good reason...

    Watch it now to see how they're pulling it off:

    http://clickmeterlink.com/cryptoinvestors

    ReplyDelete
  17. G-Game ICO 👉 https://www.g-game.io/
    ►The World leading Laser Technology ICO
    ►G-GAME aims to become the leading ICO for a real business with a breakthrough laser technology for the shooting area.

    ReplyDelete
  18. Kringle Exchange coin Initial Coin Offering - https://www.kringleexchangecoin.com/
    ► KRINGLE EXCHANGE COIN IS A COIN THAT RUNS ON BLOCKCHAIN TARGETED TO BUILD A PLATFORM WHERE THE BILLION COIN INVESTORS CAN EXCHANGE THERE TBC TO OTHER ALTCOIN AND BITCOIN

    ReplyDelete
  19. Bitcoin Tool - Telegram Crypto Alert Signal https://www.bitcoin-tool.io/ We give you the Trading Signals on Binance and BitMex by Telegram This tool is meant to be an advisor for a large community who wants to gain money by investing in cryptocurrencies. Starting with an idea to make the cryptomarket more accessible and easy, we wanted to find a way to reduce the risks of trading. Our concept is to build a community that goes with flow of the market and even changes its direction at some points. We are a group of people from all over Europe and we are eager to change the cryptomarket with a fully automated service that has proven very precise in our beta phase of one year.

    ReplyDelete
  20. Bitcoin Loophole App the #1 automate trading software for bitcoin and other currencies. Open 100% free account. Create your trading strategy & make profits.
    Website ► https://www.bitcoinloophole.app/

    bitcoin loophole
    bitcoin loophole app
    bitcoinloophole

    ReplyDelete
  21. Automated Crypto Currency Trading!
    ---- Apitrade
    Apitrade is automated crypto arbitrage trading bot, which only costs you money when the bot is making the profit.

    ReplyDelete
  22. Maya Preferred 223 (MAPR) The Best In Cryptocurrency Ever!!
    We shoot for high returns for our Coin Holders and give back to the people who mean the most . . . YOU - https://mayapreferred.io/

    Buy MAPR on FatBTC exchange - https://fatbtc.com/

    The Maya Preferred 223 team is pleased to announce that today MAPR has been listed at FatBTC, a top cryptocurrency exchange.
    - https://www.coinspeaker.com/tradings-on-maya-preferred-223-has-been-listed-on-fatbtc/

    Maya Preferred 223 is a state-of-art Ethereum Classic-based ERC23 token backed with approximately $18,500 worth of gold and silver from seven major mines based in Mexico. Maya Preferred is currently being traded on FatBTC exchange. The token is developed by U. K. Financial Ltd.
    - https://en.bitcoinwiki.org/wiki/Maya_Preferred_223

    Maya Preferred 223 Releases Proof of Gold and Silver Backing
    - https://release-news.com/finance/maya-preferred-223-releases-proof-of-gold-and-silver-backing

    Exclusive Interview With James Dahlke, CEO of Maya Preferred 223
    - https://zycrypto.com/exclusive-interview-with-james-dahlke-ceo-of-maya-preferred-223/

    Maya Preferred 223, A New Token that will Overgrow Bitcoin One Day
    - https://www.24-7pressrelease.com/press-release/461603/maya-preferred-223-a-new-token-that-will-overgrow-bitcoin-one-day

    The Great Stabilizer: James Dahlke on Maya Preferred 223’s Potential
    - https://www.econotimes.com/The-Great-Stabilizer-James-Dahlke-on-Maya-Preferred-223s-Potential-1518497

    Maya Preferred 223. A New Token That Will Overtake Bitcoin One Day
    - https://www.coinspeaker.com/maya-preferred-223-a-new-token-that-will-overtake-bitcoin-one-day/

    Youtube- Maya Preferred 223 - https://www.youtube.com/channel/UCF4Y07-6wbmtvtkMaQN4GKQ?view_as=subscriber

    ReplyDelete

Post a Comment

Popular posts from this blog

Intro to Cryptocurrency Value Investing

Crypto in 45 on MDD Episode 3