What happens when the price of a currency skyrockets, but nothing warned us? It was not a conspiracy or magic, it is a market flaw. The graphs and surveys show us numbers and trends, but not emotions; here is an example:

On April 10, 2013, Bitcoin established a historic peak at 266 USD, marking the end of the second bull market. After the price of Bitcoin fell by more than 80% in the following six days, many people predicted the possible disappearance of Nakamoto's invention (...) After German authorities recognized Bitcoin as a fully legitimate private payment method in September 2013 (...) Just eight weeks were enough for Bitcoin to establish another all-time high, this time at 1242 USD

XBT. (n.d). The story of Bitcoin

This strange phenomenon is the Invisible Leap in politics, a sociological phenomenon that occurs when a society changes its opinion or behavior massively, but without any visible prior signs in surveys or public discourse.

It is the moment when a silent majority decides to abandon one stance and adopt another, but the change occurs under wraps until it manifests suddenly, usually in an election or a revolution.

Here I explain how it works and why it is so dangerous for both expert and inexperienced traders:

1️⃣ The Theory of False Preference

To understand the invisible leap, one must look at the theory of economist Timur Kuran.

*️⃣ People often lie about what they think to avoid social conflict. In trading, traders claim to support unknown tokens to avoid claims or advice from "experts."

*️⃣ They publicly support the regime or the politically correct candidate, but privately they are accumulating discontent. Similar case with the market; despite technically supporting the adoption of an asset, there is discontent.

*️⃣ The leap is invisible because, externally, everything seems stable until a small event acts as a catalyst, and everyone jumps to their true opinion at the same time.

2️⃣ The phenomenon of the Information Cascade

The leap occurs when the cost of telling the truth decreases.

1️⃣ Accumulation phase: Internal pressure grows, but no one dares to be the first to jump.

2️⃣ The catalyst: An event, like news, a change in charts, a movement of wholesale investors, causes a few brave ones to act.

3️⃣ The invisible leap becomes visible: Seeing that others think the same, the rest of the traders jump in chain. In 24 hours, an asset that has not changed its price in months jumps to a massive increase.

3️⃣ Why is it impossible to see?

It is invisible because traditional tools like finds and charts measure what people say, not what people feel. This phenomenon has an exact parallel in the crypto market: The Capitulation or massive FOMO.

*️⃣ In very polarized or authoritarian systems, fear or social pressure creates a smokescreen. Just like traders' fear of missing out (FOMO)

*️⃣ Analysts see a straight line of stability, but underneath the surface, there is an exponential curve of discontent that is about to break.

Sometimes, an asset seems stable for months. Suddenly, without apparent news, the price breaks a resistance, and everyone buys or sells at once. It was not a momentary event; it was the accumulation of feelings that were not reflected in the order book until the resistance was broken.

IS IT POSSIBLE TO MAKE A PROFIT?

It is possible to take advantage of this phenomenon, but you must stop looking at what everyone sees; like the price and start looking at the accumulated pressure: what no one wants to see. The goal is to position yourself before the state change becomes evident.

Here we will only expose two strategies to obtain profits:

1️⃣ Detect the divergence of feelings

The leap occurs when the public consensus. That is, what is being discussed in publications, networks, and debates differs from what is happening in real money.

Open interest in Binance Futures is one of the keys. If the price is flat or slightly declining, but Open Interest is rising aggressively, there is an Invisible Leap preparing. It means that there are people "betting" heavily in private, accumulating pressure that will explode at any moment.

2️⃣ Identify zones of Hidden Liquidity

The leap always seeks the path of least resistance to explode. To do this, we will use liquidity heat maps.

Look for groups of accumulated liquidation orders above or below the current price. The market moves like a spring: the longer the price stays away from those zones, the more violent the "leap" will be when it finally reaches them, as it will trigger a chain reaction.

💡 ENEAS BB ADVICE:

"Buy in silence, hold in the explosion"

Do not give in to the fear of selling or buying; when the explosion occurs, it is already too late. Identify patterns and act before the boom. Do not listen blindly to the "experts" or trust what everyone reads, but rather what no one sees.

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