THE GAUSSIAN METHOD AND ITS INTERPRETATION IN THE PRESENT DAY OF CRYPTO ASSETS

Greetings and welcome dear readers of this prestigious platform, especially to all those users who make daily life in the community of @LeoFinance, this publication is intended to give a logical interpretation that allows us to understand the current scenario that has been presented in crypto assets.

Which should not come as a surprise, since we have been sharing information related to technical analysis and accumulation and distribution curves based on the Gaussian bell and the behavior of the crypto market for some time now.

In this sense, it is necessary to take into account that the accumulation and distribution process are fundamental bases or pillars in the long-term investment process, so it is normal to visualize consecutive periods where the market enters a bullish phase as a result of an accumulative process and consequently the opposite reaction should occur where there is a distribution of assets and consequently the price of these end up falling.

Hence, it is normal and notorious that the different markets associated with a traditional economy or alternative economy as in the case of cryptocurrencies, always move according to an economic cycle that in many cases is influenced by the sentiment of users in relation to the market, so that the value of an asset depends on the mood of investors within this economic cycle, which allows the investor to have the ability to either accumulate or distribute, a process that has a direct impact on the price of the asset.

As we can see in the previous image, the market moves in a kind of cycle that is manipulated according to smart money, understood as that capital that is controlled by investors with great economic potential, whether institutional, market experts, large banking systems, among others.

These institutions are in charge of the manipulation process and consequently of the economic cycle, since thanks to their purchasing power they have the capacity to make staggered purchases according to market sentiment and maintain their positions for long periods of time to later initiate a distribution process that allows them to capitalize on the purchases made.

Consequently, strong hands or large investors seek to enter the market at the lows that the price generates, hold their orders or positions and then sell at the highs reached, at this point the purchases are acquired by investors who have entered the market assuming a high emotional state that allows us to think of exponential growth in the price of the asset acquired.

Now, if we take the above mentioned pattern we must take into account that the bullish scenario that was presented in Bitcoin, started from 11k and therefore it is not surprising that being an economic cycle returns to its starting state, so if we look at the graph and analyze the percentage drop of BTC and consequently the rest of the cryptocurrencies, we realize that we are in a phase of price depreciation and generalized panic, which in turn should lead us to a process of capitulation of the same, so that large investors have already achieved a large percentage of distribution and are preparing for a process of repurchase to start the new economic cycle based on manipulation.

At this point it is necessary to understand that the depreciation that we observe today is a normal process of the economic cycle associated with cryptocurrencies and any economic system in the long term, consequently we must prepare ourselves because we are reaching the area that allow us to make better investments, product of the depreciated prices that are being presented and not be guided by the panic that the same economic scenario has been presenting.