Secrets of the strategies commonly used by market makers for accumulating and distributing!
1. Lowering Prices to Accumulate
Market makers intentionally lower market prices to trigger stop-loss orders from holders, allowing them to buy large amounts of virtual currency at lower prices. When the market rebounds, these low-priced tokens will yield substantial returns. This strategy is particularly effective in cryptocurrencies with low trading volumes and low market activity.
2. High-Level Fluctuation to Distribute
After an initial drop, market makers do not rush to sell but instead adopt a strategy of high-level fluctuations. They use market volatility to make investors mistakenly believe that prices are about to rebound, thus attracting them to take over. Through this method, market makers can gradually distribute without alerting the market.
3. Price Difference Adjustment Distribution
Some market makers seek long-term gains; they will sell part of their holdings at high prices and then buy back when prices drop, thereby reducing the average cost of their holdings. In candlestick charts, this operation often shows as long upper shadows at high points and long lower shadows at low points, forming a price difference adjustment pattern.
4. Inverted V-Shaped Rapid Distribution
This is an aggressive and direct method of distribution. Market makers will sell off large amounts regardless of cost, leading to a rapid decline in market prices. As long as the price remains above the market makers' cost line, they will continue to distribute. Although this strategy may cause significant market fluctuations in the short term, market makers can quickly realize profits in a short period.
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 to these strategies, analyze market dynamics rationally, and make informed investment decisions.
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