A complete understanding of how dealers operate and harvest retail investors is exposed in this article 'Collectible Level Dry Goods'

Analysis → Position Building → Testing the Market → Consolidation → Initial Rising → Washing Positions → Rising → Selling → Rebounding → Crashing → Recurring Cycle...

A Complete Analysis of the Dealer's Process:

1️⃣ Preparation Phase

Before the dealer starts intervening in a particular coin, they will comprehensively collect various information about the project, including the total amount of chips, unlocking conditions for accurate statistics, the cost of investors at all levels, chip dispersion, and community enthusiasm assessments, etc. After collecting the information, they will set the target for rising based on the scale of funds they can mobilize.

2️⃣ Position Building Phase

Before establishing a position, the dealer will conduct various investigations and research, covering market sentiment, the overall trend of BTC in the coin circle, macroeconomic factors, policy risks, and more.

Typically, dealers choose to enter the market when it is generally unfavorable, market sentiment is low, retail investors' confidence is shaken, and they hold a pessimistic view of the coin's prospects. Position building is like the saying goes: when retail investors are fearful, that is when dealers are greedy.

Depending on the dealer's strength, their holding ratio varies. Short-term dealers can control 10% - 30% of the chip quantity to operate, while long-term dealers often need to hold over 40% of the chips; of course, this also depends on the dealer's actual strength. Generally, dealers do not establish positions at high levels.

㊙️ The dealer's position building methods mainly include the following:

🔶 Negative News Accumulation: Taking advantage of negative news in the coin circle, such as project technical failures and rumors of stricter regulations, to suppress coin prices, triggering panic selling and absorbing chips at low levels.

🔶 Inducing Short Selling Trap: Creating an illusion of coin price decline through technical means, inducing retail investors to sell, while the dealer takes over at a low level, completing the position layout.

🔶 Massive Buying: Concentrated funds buying the target coin in a short period, pushing up transaction volume, attracting following investors, secretly collecting chips.

🔶 Rebound Stockpiling: In the rebound phase following a price drop, gradually buy in, taking advantage of some investors' desire to break even or take profits to expand positions.

🔶 New Project Ambush: When the target coin's associated project has major technical upgrades, new application scenarios landing, or strategic cooperation expectations, advance layout to build positions.

3️⃣ Testing Phase

During this phase, the dealer raises or suppresses the coin price in a small range, observing market buying and selling behavior, transaction volume, order situations, and emotional fluctuations, understanding the degree of chip locking, the strength of following investors, resistance and support levels, and other key information to provide a basis for fine-tuning subsequent trading strategies.

However, testing the market is not a mandatory option. Some dealers, relying on keen market intuition and rich experience, may directly initiate a rise or take other actions. The timing of testing the market is flexible and can be carried out appropriately throughout the entire process.

4️⃣ Consolidation Phase

Consolidation is aimed at optimizing the chip structure and accumulating upward energy. Depending on the coin price position, it can be subdivided into low, mid, and high-level consolidation. Coin price movements are often alternating between rising, falling, and consolidating, with the consolidation phase occupying a large amount of time. During this phase, the coin price fluctuates gently and directionally unclear, testing investors' patience. The dealer uses this time to consolidate holding costs, wash floating chips, and wait for the opportunity to rise. This phase often tests the patience of retail investors the most because its movements can be quite annoying.

5️⃣ Initial Rising Phase

After completing the preliminary groundwork, the dealer initiates the initial rising market, moderately raising the coin price to attract market attention, stimulate enthusiasm for external capital to enter, and reduce subsequent upward resistance. However, to avoid prematurely revealing intentions, which might trigger following and regulatory scrutiny, the initial rise is limited; the coin price will subsequently slightly retreat to clean up profit-taking and unstable chips, laying a solid foundation for subsequent steady rises.

6️⃣ Washing Phase

After the dog dealer accumulates a certain amount of chips, to expel following investors and force early holders to sell, they will adopt a strategy of suppressing the coin price. This allows them to absorb more chips at a low level, reduce holding costs, and eliminate weak-willed retail investors, thereby reducing subsequent selling pressure during the rise and creating conditions for high-price sales.

7️⃣ Rising Phase

After a series of operations including early accumulation, testing the market, and washing out positions, both long and short sides have formed a high degree of unity to some extent. Once the dealer controls a large amount of chips and stabilizes the market situation, the rise in coin price becomes a natural outcome. During the rising phase, the coin price rapidly climbs, and the dealer cleverly uses factors such as market enthusiasm, technical indicators, and positive news to attract more investors to follow suit, pushing the coin price to new highs and achieving substantial profits.

8️⃣ Selling Phase

As the saying goes, 'Knowing how to buy is a disciple, knowing how to sell is a master,' selling is the key goal for dealers. Successfully distributing chips is the only way to convert paper profits into actual gains. Distribution is the most critical phase in the dealer's process, as only by successfully distributing chips can they convert the profits on paper into actual gains.

To this end, the dealer will use all means at their disposal, such as creating an illusion of market prosperity, guiding emotions through media public opinion, and utilizing related accounts for false transactions to create an active atmosphere, thereby enticing unsuspecting retail investors to take over, ensuring smooth sales.

9️⃣ Rebound Phase

After a price drop, a brief rebound often occurs, which is the rebound phase. When the dealer sells and the coin price drops near the profit line, due to some retail investors' 'bottom fishing' mentality and their remaining chips' selling needs, the price may be slightly lifted, creating a rebound market.

However, this is often short-lived, and after the rebound ends, the price of the coin is likely to continue to decline, potentially hitting new lows. If investors hastily 'bottom fish', they can easily fall into the trap of being stuck in their positions; the rebound phase is a secondary stage in the dealer's process, and some targets may not have a rebound process.

🔟 Price Crash Phase

🔶 Passive Selling: Encountering sudden negative news, such as significant technical vulnerabilities, disputes with project parties, or sudden changes in regulatory policies, triggers a panic selling wave in the market, and dealers may be forced to crash the price to minimize losses. This behavior may lead dealers to abandon the market or seek to accumulate chips at low levels after the crash to regain control.

🔶 Selling after High-Position Sales: After successfully selling at high positions and locking in profits, the remaining small amount of chips no longer matter. At this point, crashing the price can both suppress it and prepare for subsequent low-price accumulation, without worrying about market image and costs.

🔶 Inducing a Price Crash for New Market: After a round of speculation ends, dealers will deliberately crash prices with their remaining chips to create a bearish atmosphere, inducing investors to sell, while testing the market bottom and investor psychology, preparing for the launch of a new market cycle.

Regardless of the type of dealer, they always go through the three phases of building positions, rising, and selling; this is the most basic 'trilogy' of the dealer's operations.