Beware of Trading in Chopcity - Mini Bitcoin Pump and Dumps

This has become the most common pattern in Bitcoin price action for the last few weeks - especially when BTCUSD has been consolidating into this large triangle. Margin trading enabled this type of price action.

The price action has been trendless and it’s chop city. This is where margin traders with high leverage like 100x get wiped out and positions easily liquidated.

Trading Tip

Avoid the chop by never trading below the 6-hour chart and don’t use high leverage. You will easily get liquidated when sudden $1,000 moves come. Mini pump and dumps are common on the 6-hour charts and lower timeframes with lots of fakeout moves. Leverage trading whales can easily manipulated the low timeframes, especially when the overall trend is still unclear. They love to do this during sideways price action.

By smoothing out the price action, you can easily discerned where the mini-trends are.