I believe we could see alts drop to 70% of their current value, due to a lack of maturity among the majority of traders.
Only using AGI as it's a great example. At the time of writing there was a sell order of 220K at 542sats.
These type of orders will undoubtedly force the price the down, as these orders scare the market and no one in sound mind would buy from that order if they notice a lack of momentum.
Why I feel this happens:
The first problem is traders hoping to make a fortune from one trade. It doesn't work like that and you probably will be forced to sell at a loss.
Buying for example 100k coins in a order book where the average order size is around 15k.
This in itself is not the problem, it's where these traders don't spread their sell orders.
Logic tells us that if the average order is around 15K there simply won't be enough liquidity to buy through that sell order.
This completely kills any upwards momentum and creates a competitive panic selling situation.
I do believe that ICEberg orders get filled as no one notices those big numbers.
The second problem is that now such a trader will try and shake his bag to get back into BTC. Never considering that the coin might still be in an uptrend in USDT value.
His portfolio value might still be up, but he never takes that fact in consideration.
So he shakes his bag by taking a massive btc loss selling out all the support below the current price (emotional Trading).
This causes in AGI's case a drop in value of 15sats easy and also forcing the AGI-USDT value down.
Everyone loses.
The point:
Spread your sell orders so you don't have these massive numbers scaring the market.
Plan your trades.
Place orders just far enough below the candle closes, so your buy orders will be filled in those nice long red wicks below the candles, but don't buy so much that you would not be able so sell them at profit.
Your sell should be just higher up in almost that same candle. However I would NOT do this myself as it's extremely high risk!!!!!!!!!! Price may not recover at all. You have at best a 50/50 chance of a winning trade and thats just not good enough.
Happy trading
William
Only using AGI as it's a great example. At the time of writing there was a sell order of 220K at 542sats.
These type of orders will undoubtedly force the price the down, as these orders scare the market and no one in sound mind would buy from that order if they notice a lack of momentum.
Why I feel this happens:
The first problem is traders hoping to make a fortune from one trade. It doesn't work like that and you probably will be forced to sell at a loss.
Buying for example 100k coins in a order book where the average order size is around 15k.
This in itself is not the problem, it's where these traders don't spread their sell orders.
Logic tells us that if the average order is around 15K there simply won't be enough liquidity to buy through that sell order.
This completely kills any upwards momentum and creates a competitive panic selling situation.
I do believe that ICEberg orders get filled as no one notices those big numbers.
The second problem is that now such a trader will try and shake his bag to get back into BTC. Never considering that the coin might still be in an uptrend in USDT value.
His portfolio value might still be up, but he never takes that fact in consideration.
So he shakes his bag by taking a massive btc loss selling out all the support below the current price (emotional Trading).
This causes in AGI's case a drop in value of 15sats easy and also forcing the AGI-USDT value down.
Everyone loses.
The point:
Spread your sell orders so you don't have these massive numbers scaring the market.
Plan your trades.
Place orders just far enough below the candle closes, so your buy orders will be filled in those nice long red wicks below the candles, but don't buy so much that you would not be able so sell them at profit.
Your sell should be just higher up in almost that same candle. However I would NOT do this myself as it's extremely high risk!!!!!!!!!! Price may not recover at all. You have at best a 50/50 chance of a winning trade and thats just not good enough.
Happy trading
William