Cryptocurrency market manipulation. Part 3 — levels and mines.
Recall that a manipulator is a very big player, thereby he can’t immediately close and open his position, it is done for several days, weeks or even months. Therefore, the stability of the price of the asset is very important for him during the formation or disbandment of its portfolio. For this, he also uses several techniques:
Holding the level. That is, retention of some psychologically significant level for speculators. For the prices are usually used round and beautiful digits, which are remembered by crowd within a day. A very large wall is set on buy/sell at this level, which the crowd can’t break through and this affects their fragile psyche. For example, if you set order to buy Ethereum at the current market price of $ 300 in the amount of several billion, then it is highly likely that crowd will try to smash the wall, but in the end they will surrender and stand on the side of the manipulator with thoughts “buying a big player means that he knows something secret :)”, so eventually the power of the manipulator to keep the specified level will even grow at the expense of the crowd. After the crowd calms down, the monster can move the wall to the next level, which he wants.
Mines. These are hidden large orders for the buy/sale of assets, put by robots automatically. This algorithm is used to deceive crowd to make them act exactly the opposite of the current news background because manipulator for some reason doesn’t want the movement in one direction or another or wants to sell/buy a large volume of the asset. For example, a monster wants to sell a large volume of assets, for this, he puts a big enough wall for sale. But this wall can be overcome by the crowd, for example, $300 wall of several tens of thousands of coins or a few smaller walls at slightly different prices. At the same time many lots are being put up for purchase at 299,298,297, etc. but with very small visible volumes (1–5–10 coins). The trick is that mines are laid in these lots for the buy, which trigger when the transaction is executed, i.e. when the lot is executed, the robot again puts the same volume at the same purchase price. What does an inexperienced trader see? He sees that there is a large lot for sale, which is gradually decreasing in size, but at the same time he sees small lots for buy, but from his point of view no one wants to sell, i.e. there are no sales at all, the buy lots are always hanging. Then the trader decides that since no one is selling, then I need to buy =) and joins the crowd gnawing the lot for sale. This method works even with a powerful news background in case manipulator plays against! The crowd just decide again that they don’t understand something, the news is obviously a fake, etc. Their expectations of growth/fall on such “important” news are not being fulfilled. They are again standing up in antiphase and stuff the pockets of the manipulator with money.
Again, we will never know exactly what kind of plan the manipulator has, the two examples above imply the placing of walls in the form of large lots, but they have the opposite effect. In one case they are for keeping a level, and in the other for selling/buying an asset. The emergence of large lots should, in our opinion, be examined with caution — since they are not without reason… You can find mines from the analysis of the history of transactions, just the bulk of the crowd doesn’t do it.
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