TOP 3 Reasons for the Great Dump in 2023
アップデート済
The crypto market looks bullish these days! But does it mean that the bearish trend is over and we are at the beginning of a new bullish cycle?
In this post, I want to share with you the TOP 3 reasons that will be able not only to change the bullish sentiment but also to dump the market to new lows.
REASON 1: Regulation
We are not far from CBDC and I don't believe that Europe, the USA, and other developed countries will release CBDC without regulation of the whole crypto market. Also, another argument for the regulation, is too much scam!
The crypto market increased the capitalisation.The crypto became part of the financial world. So, the regulation is a logical step forward.
I bet this year regulators from different countries will try to take the crypto market under their control. If so, it will be a bearish factor for the market.
Of course, everything will depend on the exact format of the regulation. But anyway, it may create a strong bearish pressure. So, we have to consider such risk in planning our long-term trades.
REASON 2: Scam & Bankruptcy
In 2022 we had many ways to blow our money. Even if you followed the rules of proper risk and money management, it wouldn't defend you from shitty situations. For example, staking UST was an amazing idea. Just around 20% for doing nothing, in the bearish market... why not?
You staked the stablecoin one of the top projects in the crypto space! Smart? Yes, sure! And... you know the result.
FTX, the 2nd crypto exchange offered you very interesting terms for trading. It was absolutely logical for many retail traders to hold their crypto assets using FTX accounts. FTX was a very reliable crypto exchange with good potential. And? You know the result.
And there were other companies and coins which could help you to stay without money.
Who told you that in 2023 we will avoid such situations?
Scam and bankruptcy stay one of the main reasons for the great dump! Just imagine, what if Binance cheats their clients??? Where will be Bitcoin after such news? Around $1 000??? What if Coinbase goes bankrupt??? Possible? Absolutely yes! After FTX everything is possible.
I talk about the top companies in the industry, but there are many other companies with lower status that will be able to dump the crypto market as well.
Again, we have to consider this risk in planning our trades.
REASON 3: Manipulation
The crypto market is a manipulated market. It's a well-know fact. We have to be ready to see manipulated movements where manipulators execute their plan. Is it possible? Why not! Just remind you, big players have enough resources to push the price in any direction they want.
You could take part in the pump, but who started it? Many retail traders blew their accounts shorting crypto assets. Did they have reasons to open short positions? Yes. They had fundamental reasons to expect the continuation of the bearish trend. But the volume created by their short positions was used to pump the price to local highs. Why not to do the same for dumping the market?
Manipulators don't have a goal to make your rich. But they have a goal to take your money and reach their goals. And I think, one day when there will be enough "bullish" volume created by long positions, manipulators may dump the price and update the lows.
They took money of those who shorted. They will have an opportunity to take money of those who believe in new ATHs and "to the Moon!".
In order to create panic sales with the further margin calls in the market full of bullish sentiment and long positions, they just need bearish news and a short position with good volume opened by market prices.
I consider these 3 reasons in planning my long-term trades. Of course, maybe non of them will be activated in this year, but it will be just a nice bonus.
And what do you think about reasons that may dump the crypto market in 2023? Share your thoughts, please.
In this post, I want to share with you the TOP 3 reasons that will be able not only to change the bullish sentiment but also to dump the market to new lows.
REASON 1: Regulation
We are not far from CBDC and I don't believe that Europe, the USA, and other developed countries will release CBDC without regulation of the whole crypto market. Also, another argument for the regulation, is too much scam!
The crypto market increased the capitalisation.The crypto became part of the financial world. So, the regulation is a logical step forward.
I bet this year regulators from different countries will try to take the crypto market under their control. If so, it will be a bearish factor for the market.
Of course, everything will depend on the exact format of the regulation. But anyway, it may create a strong bearish pressure. So, we have to consider such risk in planning our long-term trades.
REASON 2: Scam & Bankruptcy
In 2022 we had many ways to blow our money. Even if you followed the rules of proper risk and money management, it wouldn't defend you from shitty situations. For example, staking UST was an amazing idea. Just around 20% for doing nothing, in the bearish market... why not?
You staked the stablecoin one of the top projects in the crypto space! Smart? Yes, sure! And... you know the result.
FTX, the 2nd crypto exchange offered you very interesting terms for trading. It was absolutely logical for many retail traders to hold their crypto assets using FTX accounts. FTX was a very reliable crypto exchange with good potential. And? You know the result.
And there were other companies and coins which could help you to stay without money.
Who told you that in 2023 we will avoid such situations?
Scam and bankruptcy stay one of the main reasons for the great dump! Just imagine, what if Binance cheats their clients??? Where will be Bitcoin after such news? Around $1 000??? What if Coinbase goes bankrupt??? Possible? Absolutely yes! After FTX everything is possible.
I talk about the top companies in the industry, but there are many other companies with lower status that will be able to dump the crypto market as well.
Again, we have to consider this risk in planning our trades.
REASON 3: Manipulation
The crypto market is a manipulated market. It's a well-know fact. We have to be ready to see manipulated movements where manipulators execute their plan. Is it possible? Why not! Just remind you, big players have enough resources to push the price in any direction they want.
You could take part in the pump, but who started it? Many retail traders blew their accounts shorting crypto assets. Did they have reasons to open short positions? Yes. They had fundamental reasons to expect the continuation of the bearish trend. But the volume created by their short positions was used to pump the price to local highs. Why not to do the same for dumping the market?
Manipulators don't have a goal to make your rich. But they have a goal to take your money and reach their goals. And I think, one day when there will be enough "bullish" volume created by long positions, manipulators may dump the price and update the lows.
They took money of those who shorted. They will have an opportunity to take money of those who believe in new ATHs and "to the Moon!".
In order to create panic sales with the further margin calls in the market full of bullish sentiment and long positions, they just need bearish news and a short position with good volume opened by market prices.
I consider these 3 reasons in planning my long-term trades. Of course, maybe non of them will be activated in this year, but it will be just a nice bonus.
And what do you think about reasons that may dump the crypto market in 2023? Share your thoughts, please.
ノート
If you think that the price reached the bottom and the bullish trend began, please, share your arguments. It will be great to discuss.
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