Recently, I’ve seen many people in the community asking how to tell whether the main force is just shaking out the weak hands or actually preparing to distribute. This question is indeed very critical; mistaking the direction can lead to serious losses. I’m sharing a few core indicators I’ve summarized myself, hoping to help you avoid some pitfalls.

First, let’s talk about trading volume, which is the most straightforward signal. When the main force is shaking out the weak hands, they usually deliberately suppress the trading volume, using small fluctuations to scare retail investors into selling. But once they start truly distributing, the volume will significantly increase because they need to unload their positions. So, by paying attention to changes in volume, you can basically see what the market is doing at a glance.

Next is the price position, which is also very important. Usually, the main force begins shaking out around a 30% increase, which ensures there’s still room for further upward movement and allows them to absorb more chips. But if the increase has already exceeded 60%, it’s a clear signal that the main force is about to start distributing. At this point, you’ll see huge volume at high levels, which is a very dangerous sign—you need to run quickly.

The trend on the intraday chart can also reveal the situation. During shaking out, the main force will create sharp rises and falls to scare off those with weak resolve. But during distribution, they tend to keep the price movement more stable, with the intraday chart showing a gentle trend. The goal is to quietly unload their chips. So, by observing the volatility on the intraday chart, you can judge whether it’s a shakeout or distribution.

The last indicator is the distribution of chips. During shaking out, chips tend to accumulate at the bottom and stay relatively still, as if they’re stockpiling ammunition for a big move. But once distribution begins, the chips will gradually loosen, and the distribution pattern will change. Mastering this detail allows you to precisely grasp the market’s rhythm.

Recently, I’ve also been paying attention to these market changes on Gate. Bitcoin’s trading volume in the past 24 hours has been over 400 million USD, with not much fluctuation. In such situations, it’s even more important to carefully judge the true intentions of the main force. Remember these four indicators, and it won’t be so easy for the main force to fool you during shakeouts and distributions.