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Hello traders, investors and community. Today I want discuss with you how Smart-Money, Retail-Money and Dumb-Money (News trader) accumulates in
the cryptocurrency space.
In my chart, you can see the specific phases in which these three types of buyers accumulating BTCUSD for long-term purposes.
With two accumulation processes already finished and the third developing now.
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1. Smart-Money: Given in a downtrend a new lower low is established, Smart-Money, also known as "whales", "institutional investors" or "Big Players" placing
high Limit-Orders (Often Over-The-Counter) at likely prices and pushing the price higher. A new short term-trend is developed.
2. Retail-Money: Also known as "private trader", "individual money" or "not-institutional" accumulating shares at given prices after smart-money already
pushed prices higher. There is still plenty of space for price to develop in this phase.
3. Dumb-Money: This type hears the news and rushes in to buy bitcoin shares. He does not follow technical analysis and is normally emotionally driven.
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There is no way of accumulating right or wrong for long-term purposes but the best option would be to accumulate at best prices as smart money does.
In my analysis, I consider buy and hold for long-term purposes with these specific types, not traders.
As a trader, you can take advantage of it and places your trades for maximum profit.
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Thank you everybody for watching, feel free to support. May all your trades going well but more important happiness and a good life! ;)
Information given is only for educational purposes and should not be used to take action in markets.
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