Fearing to stand guard when prices rise, afraid of deep traps when bottoming out? Recognize the market maker's "distribution and washout" 🔥



Recently, coins like $UB and $BILL that have been rising all the way up, retail investors dare not chase, want to wait for a pullback, but often end up watching the price decline all the way, and those who buy the bottom without moving spend a lot of time and energy

Today Sister Min will take you to see the underlying logic of the dog market makers!!

1. The trap of strong coins: How to judge whether it's a pullback or a reversal downward?

The standard is not based on intuition, but on observing capital flow:

K-line pattern for resistance: True pullbacks will have funds supporting during the session, with many lower shadows. If it's distribution, the K-line is often a hollow bearish candle with no signs of rebound.

On-chain data for anomalies: Find early low-cost addresses. If they start selling off continuously, it indicates a change in fundamentals—this is not a pullback but a top escape.

Contract data for the core: Once a downtrend forms, check the short contract's opening cost. If the short position volume is huge and profits are substantial but not closed, it indicates the market maker is "selling spot and shorting contracts" simultaneously to harvest. If the main short positions are not closed, the trend won't reverse.

Exchange net inflow for selling pressure: Monitor the speed of token inflow into exchanges. Large deposits often prepare for dumping.

2. Why do retail investors always get washed out when bottoming?

The biggest enemy of bottom-building is "uniform expectations." When the vast majority of retail investors believe this is the bottom and heavily buy in, the market maker will never act as a helpful "lifter."

They will first dump the market, create panic to force retail investors to sell (washout), and only after accumulating chips in their hands will they consider lifting the market. This process is extremely long and torturous.

What retail investors should do is, whether it's a strong pullback or bottom-fishing, fundamentally it's a psychological battle. The market maker fears most is not your understanding of technical analysis, but that you have more patience than him.

⚠️ Do not fear short-term fluctuations, buy and cut off monitoring, use time to exchange for space. Not getting shaken out is the only shortcut for retail investors to make money. If you still don't understand after hearing all this, you really should follow @Block Hunter Sister Min.
UB7.07%
BILL3.4%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned