The Art of War

The Federal Reserve’s interest rate hike by 75 basis points has caused an uproar of excitement across the cryptocurrency sphere, as market participants anticipate a “turning point” for Bitcoin to once again outperform other asset classes and continue dominating the percentage returns leaderboard.

But, what if that’s exactly what they want you to think?

We covered well in advance that whilst the market was bouncing from one end of the trading range to the other, throughout the early weeks of June to the middle of July, it was inevitable that after a near -75% drop from BTC’s all-time high that somewhat of a stability phase would eventually return to the market.

Think about it logically, is it merely a coincidence that BTC crashed from a milestone high of $69,000, crushing anything standing between its pathway of destruction for the greedy bulls, only to suddenly hit a historical psychological support of $20,000, fluctuate in a tight range for weeks, create anxiety amongst traders trying to predict a directional breakout, and then suddenly breaking out to the upside off the highly anticipated FOMC data?

Instead of viewing the fundamental data as the driver of the markets and indicator of market sentiment, view the timely-orchestration of a shifting market sentiment, alongside price action leading up towards and following the release of the rate hike data. Could it be a coincidence that a positive burst of life has returned to crypto out of nowhere, at a point in time where many have been constrained by fear and anxiety over how much more room the market has left to the downside.

It’s no secret most were expecting lower prices to follow. When we revealed we had been buying XRP around the $0.30 territory, it was met with confusion and disbelief... why on earth would they buy there? Are they not expecting lower themselves? The answer to that question is yes, we are expecting lower, but not quite the same levels everyone else currently has in mind.

For a bull trap to be effective, the market must push the boundaries and threshold of the market participants emotional instability. It must drive them to a point where emotions take control of the driver’s wheel and steer the participant into making decisions based on those impulsive emotional waves running through their veins. Look at what’s currently happening and ask yourself if this is somewhat normal considering the overall market circumstances?

Out of nowhere, in a bear market, the prices suddenly rise. Nobody really bought the current bottom, as the majority have been expecting much lower.

The market then suddenly begins a rally to the upside....

What do you think the average market participant is thinking?

Could it be fear? Or worse, the fear of MISSING OUT?

You’re damn right they’ve started buying.

You’re damn right they’re losing control of their emotions and acting off of impulse right now.

What do you think these current buyers who bought recklessly with no justification will do upon the slightest dip lower back to $20,000?

They will panic-sell in fear of the market going lower.

They will then try to buy the ‘dip’ lower, but due to so much excessive consumption in the little intraday up and down fluctuations, they’ll be unable to decipher the bigger picture and very likely miss the move entirely.

 

Whilst on-chain metrics are slowly but surely firing off signals and confirmations that Innovation Markets members have been shown to track for many months in advance now, it does take an element of sensibility to understand that not everything happens immediately, and the first initial move tends to be a major trap.

Whilst we’re comfortably positioned at the very lows of this major crash, we have a full understanding the market is likely going to go lower than many believe is possible. For those in doubt and denial, our initial $17,000 BTC target given at $69,000 should make you realise by now exactly what’s possible in crypto. The worst is yet to come, to say the least...

Take into consideration the Ethereum ‘merge’ to Proof of Stake announcement being released in a timely fashion to the rate hike. Is it not strange that ETH suddenly blows up higher following this data release and the weakening of BTC’s dominance? The ETH upside move was another classic bull trap confirmation, where traders now rush to jump in above the $1,500 handle in anticipation of a major pump coming into play before the official launch and mergence to the POS protocol.

Do you think they’ll let you make money that easily? Think again.

A weakening BTC dominance is supposedly an indication that investors are opting for the next best contender - Ethereum. This of course impacted the ERC20 tokens positively as a byproduct, but unfortunately it seems many cannot decipher the clear traps being deployed here.

Not only was everyone expecting the market to drop much lower, they were also expecting a major alt szn. Of course, with alts being so low right now, any form of upside can be considered an alt szn when you put into perspective how easy 100%+ returns can be achieved from these prices.

Now combine the full playbook together, it’s incredibly simple.

1. Consolidate the market at $20,000 in order to build anxiety and confusion. Investors (the majority) are now watching their portfolio’s deteriorating into dust, knowing with so much downside left to go the portfolio could be worth nothing.

2. Make these individuals panic sell at the very lows with the intention of making them believe they’re now geniuses at predicting the market sentiment and trends.

3. Slowly but surely push the market higher. Generate FOMO through positive fundamental data releases and excessive-outperforming alts seemingly out of nowhere.

4. Make said-individuals lose composure and feel they’ve missed the bottom. Consume them to a point of pain and FOMO that they start buying at the top of the current pumps being witnessed across the board...

5. You know the rest...