TRADING REFLECTION:
The market of $BTC , in weekly timeframe, is experiencing a bullish rebound after having fallen a little more than 50% from the highs. Let's remember that the price normally moves by following the plan that generates the most profit for the one who controls the market.
This means that they will transfer money from retail traders to institutional traders, using all the tricks they have up their sleeves and that are necessary. For this, they need time while the process of inducing others into error develops.
Once the largest amount of money $BTC needed to counter the institutional positions has been accumulated, the price develops the expected manipulation movement.
Stop losses and liquidation points of over-leveraged participants are always the fuel for high-frequency algorithms of Market Makers to take advantage of liquidity and execute the plan to carry out the work in the most efficient way possible.
Large investment funds use more sophisticated operational plans; they have advanced technology tools and develop hedging strategies, and can participate in other markets and/or corresponding derivatives simultaneously for risk and capital management. Moreover, they have greater ease of access to collateral, loans, and credit. They have enormous accounts, which forces them to constantly repeat the manipulation to provide counterparty to their positions with the aim of obtaining profits for themselves and their clients.
Understanding the functioning of the market allows you to think like "They" and propose high-probability scenarios, developing a strategy that has a statistical advantage. This allows you to find a favorable starting point to begin managing risk and trading in the markets.
Finally, when you manage to understand the process and execute your operations disciplinedly, you will be able to obtain profitability from the market.
No FOMO, no FUD, risk control.