Bull Run Or Bull Trap?

We’ve talked so much about the recent greens in the market and anybody that knows their crypto should’ve been preparing for some kind of pullback or retest. That is what we’re currently looking at.

If you’ve been watching the markets closely the past few days, we get random pumps during the day and after the pumps, we experience corrections in the form of price consolidation at it trades in a small range with mild volatility throughout the day.

At some point in the day, there’s usually a drop in price after the sharp pump, and after this, price slowly and steadily retraces it way back to the pump price and just when it hits it, another huge pump happens. I’m not sure I’m making sense to any other person because this might just be something only I’m seeing. Or worse, something I don’t know how to explain to other people to see. And this isn’t even technical analysis or anything complex so if I did a good job explaining, even a regular person like me should get it.

Retests and corrections are not bad news

Much as we want to keep seeing green, the red is an essential part of the market too. For one, it presents people who missed out on pumps more opportunities to get in before the next pump.

Not everyone is online when these pumps happen, and not many have limit orders ready at the pump prices so it’s very likely a good number of people will miss it when pumps happen. Also the time of the pumps play an important factor. I noticed that most of the HIVE pumps happen around midnight here when most people are sleeping. Most people except my group of people though.lol

Aside giving people who missed out on pumps a chance to get in before the next pump, it also allows scalpers get back in after selling their assets for quick small profits.

I know a lot of people sold their HIVE at .45 during the pump two nights ago. The retest at .35 currently has given them a re-entry back into the market at lower. This gives them more HIVE for scalping.

Then there’s me and people like me and @burlarj who think that the few cents I can get from scalping will not be worth it if after selling for quick profits, HIVE shoots up like it did to $3 in the last bull run. Will the .1 scalping profit be worth the regret of missing out on 2 dollars and 55cents per HIVE ? I know this unrealistic af but take it as a “what if” scenario.

We might not be completely out of the woods yet though.

In my opinion, we’re still in bear territory at the moment, so we can’t completely dismiss the chances of sinking back down again.

The next strong movement in the market will influence greatly the market sentiment and direction over the next few months.

If the next strong volatility is to the upside and we have a pump, then it takes us farther away from the bear and closer to the bull, and also in a way suggests that even though we’re still in bear territory, bulls are taking over as they’re building bullish momentum slowly.

On the other hand, if another dump is the next volatile movement we see, that suggests that the pump we saw a few days ago was just a bull trap meant to lure in and liquidate buyers.

In times like these when market direction is less predictable, I like to stay out of the market and wait until things become a bit defined. Maybe let’s break and hold above a significant level like 25k for example.

Posted Using LeoFinance ^Beta