I started trading crypto futures pretty recently, and there's something really strange I noticed - every day, at midnight GMT, one cryptocurrency is essentially guaranteed to pump at this time. There have been 3 instances I have noticed, but I'm sure they happen every day. Here they are:
UNFI/USDT - 26/7/2021
In fact, I had actually opened a long position before this pump, but I digress. Anyways, it can be seen that there was a massive spike in volume followed by numerous large green candles for no reason at all except for the fact that it was midnight GMT, or 10am in my time zone.
CVC/USDT - 27/7/2021
This one was really insane as CVC gained more than 50% over a period of an hour, and for no reason at all!
STORJ/USDT - 28/7/2021
Although it had a pretty large initial candle, the full size of the pump was not much (only around 25%), but it still goes to show the massive forces behind the market. Also, there was an incredible increase in volume (60 times more, probably) than the candle before it.
Trading Strategy?
Well, at this point these pumps pretty easy to identify, so a possible strategy would be to monitor the top gainers list (or similar) in your trading platform of choice, and, at midnight GMT, look out for any sudden rises up the ranks. If it's still trading within the first candle, it would be a pretty solid choice to buy and hold for the next few minutes to an hour at high leverage.
Why?
The only reason behind this I can reasonably think of is daily binance pump & dump groups, but this seems rather implausible to me - the 'dump' never comes to these coins. Usually, they just stay range-bound at their local highs with slight corrections and rebounds along the way.
It could also be just because of a whale purchasing large amounts and other traders joining in, but this also seems unlikely as a whale would not have enough capital to pump different cryptos every day, nor would they have a strict 'regime' to only buy at midnight sharp.
What do you guys think it could be caused by?
PSA: never invest more than you can afford to lose, and don't invest at too high of a leverage or you'll get liquidated
TL;DR suspicious pumps are happening at midnight GMT every day to random cryptos, the reason is unknown but these pumps enable a possible trading strategy
Submitted July 27, 2021 at 10:00PM by aerobull_42 https://ift.tt/3rC4dwn https://ift.tt/2Z7cX2s
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