Markets continue to go crazy with regular injections from the largest central banks. Stock market indices are at historic highs and investors who have experienced the spring crash can now order a bath of champagne, a couple of buckets of red caviar and celebrate their success in the financial arena. But today we will not talk about them, but about those lucky ones who, despite everything, continued to believe in bitcoin and, together with large funds, bought the Namber van cryptocurrency. I can imagine how they were bursting with joy when bitcoin pushed through the strongest resistance level of 20,000 and took more and more heights on triggered stops and due to margin calls in a matter of hours.
On December 17, 2020, a new all-time high of 23,800 was recorded.
Could such a development of events have been foreseen?
According to the scenario that I laid out a month ago, a squeeze to the resistance level of 20,000 was predicted and a subsequent breakdown, as a result of which a buying climax would occur.
There is a squeeze, there is a breakdown, now the main question is: “At what stage is the culmination of purchases?” If in the final, then the pump will be followed by a dump, which can burn many hamsters.
As an example, I want to give some screenshots of the pump & dump scheme.
And also to remind about the psychological aspects that drive traders in the financial markets.
Friends, take care of your deposits and don’t fall for the FOMO effect! Always make informed decisions and stick to MM!