Yeah, this has been explained many many times over the past few months. But usually it only needs 4 points!
1. Buy so much that demand is created, driving price up
2. Sell so much that supply is created, driving price down
3.
4. Profit!
That doesn't explain anything. How does Buying create demand? Your version is mush. I'll stick with the OP
you put orders on the buy side.
Let us say, there are 100 $ on the sell side. 100$ on the buy side. Now someone comes in and wants to buy for another $50.
So now the people that have the same amount of bitcoins on the sell side will start increasing the prices, since they want the 150, not the 100. The demand increases and people will start meeting this demand at higher prices. The more people are buying and willing to pay, the more people will increase the price they are willing to sell with.
Now when this initial buy leads the sellers to increase their prices, more buyers might come in, wanting to profit from the upward trend in price. They might think that "Hey, now one coin is one dollar, if the buy side is 150, it might get to 1,5, i need to get in and sell!"
So, the prices will increase by the willingness of people to buy and the demand for the good set by the sellers. When the increased demand ramps up the prices, the smart hedge fund will move from the buying side to the selling side, fulfilling the orders of the people who now ramped up the buy side. They have "stung the market" with their pumping and are the early sellers. They might meet a certain money criterium necessary, like an increase in 2-3% in price after fees are calculated.
So the hedge fund themselves have invested in buying a lot at let us say 1, 1.2, 1.25, 1.3 and 1.4. Now the price goes up due to buyers riding the upwards wave. At the same time people in bitcoin exchange come in just to buy and exchange their dollar. So they start selling at 1.4, riding the selling wave slowly until they have sold a good amount of their previously acquired goods. Then, the market will be tested. Can the increased demand from non manipulators hold up? If yes, the prices will slowly stabilize and the upwards trend will be slow and possibly stagnant. If not, the sell offers at some point will outweight the buy offers and people will start reducing their prices again, just to get their sell offers through. Now the first bigger red candle is seen and anyone who wanted in to just rake some upward profit is going to start selling. That is what you have seen yesterday night.
