Finex really wants to test $220.
Yeah it's interesting to watch the whales there play. There are some very skilled ones too that use professional tactics for accumulation/distribution... One more drop should pull out the rest of the retail shorts. Sad to see so many traders getting fleeced. Thanks for the coins though.
How would another drop take out the retail shorts. Wouldn't they keep them open until they close and take profit? Then open new longs?
It would trap them into thinking the market is going down, when in reality we're beginning to round out on lower volume (daily chart). If they panic short toward the bottom there is little to no chance to profitably close and open a long, instead they will be in the red and wish the market down on emotion, troll forums talking their book, etc. It also catches stops of longs who would take profits into any small rally. These shakeouts usually happen on lower volume toward the end of the trading range before a big move in either direction. Whales are a clever bunch and know that many retail investors (daytraders) are not well capitalized and easily spooked.
If whales are bullish and accumulating, they need to rid the market of as much floating supply as possible, since this is what would be dumped into any subsequent rally. Once a rally starts, they are highly defined by how much selling there is. No selling, the market trends higher. Whales help the process by taking big long positions. We saw this during the last big reaction from the selling climax to $166. Often it takes time for whales to accumulate so to not mark up the price against their buying, which is why we didn't blast off right away.
In each case, a strong downward move prepares the market for an equally strong upward move by removing supply from the market, and vice versa by introducing supply to the market. I would not be surprised to see a decent rally in the coming days.
