Are you familiar with Wyckoff market analysis? It’s like an imaginary force that is literally manipulating the market. I first heard of it on YouTube. I did some follow up reading on it. It’s quite fascinating. Let me sum it up for you from my understanding of it, “Dump it, buy it, pump it – rinse and repeat.”
The dumping phase is simply the market dropping from its highs like a correction. On the way down retail investors will sell in a panic from fear of losing there gains. It’s at this time the institutional investors and bots swoop up the casualties spoils from the dip. If not enough retail investors sell out the market is pushed further down like a wine press squeezing them all out. This can be big or small. Similar to how we see large and small corrections. Think of the December 2017 crash of crypto. This phase usually comes after a strong bullish rally. The bigger the rally the bigger the dip.
Now fast forward to 2021 and BTC hitting an all time high of $60,000, the previous ATH from 2017 was around $18,000 and we smashed that this year. But shortly after there was a large correction. The crypto winter of 2018 where BTC and the market fell to new “higher” lows.
Now comes the accumulation stage. This is the best time to buy and to get into new crypto projects. Retail investors come back out and institutional investors begin to stack BTC, ETH or anything else worth of value to prepare for the next bull market.
Now here is a big difference between new investors, experienced traders and institutional investors. It’s important to understand the difference. Knowing what type you are will help you win in this game of crypto.
New investors. Not all but the vast majority buy in because of FOMO. They don’t do their own due diligence and simply want to get rich quick. They see the prices pumping up and they want a piece of the action. They have paper hands and sell at the smallest dip. Or worse they fall for a discord or telegram scam promising them an exponential amount of gains. Don’t be this type of investor. You will always lose in the end. These types are the ones that end up spreading fear, uncertainty and doubt (FUD).
Experienced traders take advantage of the volatility in the market. Old school crypto retail investors have the diamond hands and simply HOdL. These investors buy the dip. They also buy to reduce their dollar cost average (DCA) to mitigate losses and increase gains. These are the people in the community you want to learn from and follow. They are usually real with people and straight to the point. Some are even whales but never let on how much they are HODLing. They never boast of their gains. Well the vast majority keep it on the down low. Be weary of the ones that flash their crypto.
Institutional investors and bots simply play the market. They want to push everyone else out. Their are no emotions involved. They are simply in the market to make gains. These could be large corporations or whales that hold a large stake in various crypto projects. What these investors do can move the market. And it’s what we think of when we think of Wyckoff.
It’s during this time as the whales and institutional investors stack that the market starts trending back upwards again. Now is it really a singular force? Or is it just simply math and numbers? I am not so sure. However, their is a pattern here that forms and you can use it to your advantage during the dips and large corrections. You can make gains even in a bearish market if you have patience, learn the game, and play it to win it.
The lions are out to eat you. Don’t give in, don’t be the person with the paper hands. Simply put, don’t let the lions scare you and the bears shake you of your crypto.
Take advantage of this accumulation stage. Be open to learning from the various communities. Steer clear of toxic communities that are filled with FUD and negativity. Find the community with your best interests at hand. And do buy the dip it’s the best time to stack.
I feel like the bears be creeping out. Their is FUD in the air. But take a deep breath. Filter the noise. And simply buy the dip but never bet your house or life savings that is folly.
As for me. Best time to stack on SHIB, BTC and ETH and other alt coins that I’ve been eyeing.
Don’t let the bears scare you. Peace.