Revealing the Strategies Used by Market Makers for Accumulation and Distribution!
1. Lowering Prices for Accumulation
Market makers intentionally lower market prices to trigger stop-loss orders of holders, allowing them to buy virtual currency in large quantities at lower prices. When the market recovers, these low-cost tokens will bring substantial returns. This strategy is particularly effective in low-volume, less active cryptocurrencies.
2. High-Position Fluctuation Distribution
After an initial drop, market makers do not rush to sell but adopt a strategy of high-position fluctuations. They use market volatility to mislead investors into believing that prices will rebound, thus attracting them to take over. Through this method, market makers can gradually distribute their holdings without raising market awareness.
3. Price-Difference Adjustment Distribution
Some market makers seek long-term profits. They sell part of their holdings at high prices and then buy back when prices drop, thereby reducing the average cost of their holdings. On candlestick charts, this operation often appears as long upper shadows at high positions and long lower shadows at low positions, forming a price-difference adjustment pattern.
4. Inverted V-Shaped Rapid Distribution
This is an aggressive and direct method of distribution. Market makers sell off large quantities regardless of cost, causing market prices to drop rapidly. As long as prices remain above the market makers' cost line, they will continue to distribute. Although this strategy may cause significant market volatility in the short term, market makers can quickly realize profits in a short time.
These strategies reveal how market makers manipulate market prices through accumulation and distribution in the cryptocurrency market to achieve their profit objectives. Investors should remain vigilant about these strategies when participating in the market, analyze market dynamics rationally, and make informed investment decisions.
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