If a project party does nothing, funds will definitely continue to flow out. If it can stay at a position for two or three days, it indicates that there is definitely buying support at the bottom, rather than everyone suddenly stopping selling.
However, just because a trader is continuously accumulating at a certain position does not mean they can definitely 'protect' it. Sometimes, after trying to support it, they might realize they can't hold it and will let retail investors sell down to the next level before supporting it again. This way, the trader's accumulation cost will be lower, and there is no need to support it at a high price.
How does a trader determine which level to let it drop to? When they notice that during the consolidation phase, retail investors are no longer cutting their losses, they start considering lifting the price with favorable news to attract new buying pressure, pushing for the next wave.
As a senior cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the crypto space but unsure where to start? Click on my profile to see the introduction to my journey, and let's witness the moment of miracles together.