Common methods used by market makers for accumulation and distribution!
1. Price suppression for accumulation
Market makers intentionally lower prices to trigger stop-loss orders, then buy virtual currency at a low price, waiting for the market to recover to make a profit. This strategy is suitable for cryptocurrencies with low trading volume and few orders.
2. High-level consolidation
During the first wave of decline, market makers do not sell off but choose to consolidate at high levels, leading most investors to believe that prices will rise again, thereby taking over the positions, ultimately achieving their distribution goals.
3. Price spread distribution
Some market makers do not pursue short-term profits but instead sell chips at high prices and then buy them back at low prices to reduce the cost of their holdings. This method is reflected in candlestick charts as long upper shadows at high levels and long lower shadows at low levels.
4. Inverted V-shaped distribution
This is the most straightforward and often unprofitable method of distribution, where market makers aggressively sell off, causing prices to drop rapidly. As long as the price is above the market maker's cost, they will distribute.
These methods demonstrate various strategies employed by market makers in the cryptocurrency market, including accumulation and distribution, aimed at influencing market prices to achieve their own profits.