Wall Street Traders have Changed the Crypto Game

Have you noticed the crypto market does not move quite the same as it used to? Maybe you felt something was different but you could not quite figure it out. I am going to go over a few theories I have developed on how Wall Street traders are creating opportunities for themselves in crypto trading and we are the targets.

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This article is focused on day trading and swing trading, if you are a HODLer you are safe from Wall Street's gimmicks but it does not hurt to dive deeper into the subject.

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You may remember this past December, it was announced that Bitcoin would be available for Wall Street to trade, including Bitcoin options. This article announced Goldman Sachs entering the crypto arena.

http://fortune.com/2017/12/21/goldman-sachs-bitcoin/

What we did not know at the time is what was fueling the rapid rise in the price of Bitcoin, where November 19th $BTC was trading at $8,000 and just 30 days later it peaked at about $19,400, was Wall Street setting up a massive opportunity to buy sell options on Bitcoin. They fueled the frenzy, and just as everyone started dreaming, they bought huge amounts of sell options, just prior to unloading all the $btc they had accumulated to initiate a perfectly timed downtrend.

(credit: bitcoinprice.org)

The good news for us is that was there one big ha rah, not to say they are done sticking their hands in the cookie jar, but as far as premeditated coordination goes, nothing will be bigger for them then that was.

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Also, I want you to look at how hard and how fast Bitcoin spikes on that yearly graph in both directions. This will be the pattern you will continue to see over and over again in other crypto coins, except on the daily charts for them. Since Wall Street(and other whales) do not have their usual tools available through the stock market, such as options on other crypto coins, they have been mimicking their first huge play, and will continue to do so until it stops working. Here are some examples but these patterns are everywhere right now.

By quickly buying up a coin, often accompanied by some minor news, they are creating a buying frenzy for many novice traders, as they see the price shoot up fast. However, since all the buying is done so fast, unless you had the coin before the movement, you will likely not catch any upside.

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Here is where it gets ugly. We are used to things going up fast and coming down fast, but then we are used to a lot of movement after that down tick, in both directions. However, since this is all a show, they dont even fake much buying pressure, and just dump everything they just bought into the little frenzy they just created. It is working for them, but there are ways to combat it, and profit.

The first, and easiest, is to just buy and hold coins in your favorite crypto projects. Professional traders NEED you to make trades to have a chance to make money off of you, so by just holding, you block any possibility of a shake down.

The other way, and I think this strategy is becoming critical in profiting off of the market, is to set sell orders on your short term trades at your target sell price(I suggest 5-15% profit area), this way you will be able to capitalize off of the quick up and down of the coin price as it gets pumped and dumped. Legitimate volume would not erode the price back to it's pre-increased volume price so quickly.

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