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How so? As a noob in trading, I find it fun to ponder all the psychological factors. People buying fuels mania leading to more people buying fueling more mania. Until some turining point when too many people start to sell fueling a depression making more people sell fueling more of a depression...

Obviously people with enough money can try to artificial trigger those processes, but what are the conditions for that to work? Maybe the overall trade volume needs to be small enough?

How does an artificially triggered cycle look different from a "normal" cycle?

I suspect going from 100$/BTC to 1000$/BTC as a "pump and dump" would have required a lot of money for pumping?



The candlesticks on the sell where extremely sharp, meaning it could be a naturally occuring sell of a huge account, but the very similar volume of the candle at the bottom of the dip lead me to believe they are related.

And now the pack mentality has taken over and the volume is racing up.


Having watched in real time, that's what I was saying as it happened. I think you're exactly right.


So it would be a reverse pump and dump - sell a lot, count on falling prices, then buy again?


Yes. Think of it as pushing a couple of rocks over and hoping to start an avalanche. In this case it worked.




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