Mainstream selling or washing? This way you can avoid pitfalls!

In the cryptocurrency circle, there are indeed many tricks used by the main forces, and the most confusing ones are "selling" and "washing". Once you get it wrong, you might be scared out of your position at a low price, or catch a falling knife at a high price. Next, I will teach you a few simple and understandable identification methods to help you better see the intentions of the main forces!

1. Look at K-line patterns

Selling: Generally, there is a large volume fluctuation at a high position, and the K-line chart shows a mix of red and green. The price does not show a significant upward trend, but instead hovers at a high position. After a series of "up and down pin bars," it slowly declines, aiming to make everyone believe it can still rise, but in fact, it is attracting retail investors to take over.

Washing: Usually during an upward trend, a few large negative candles suddenly appear, scaring people into thinking it’s about to collapse. This is the main force's way of cleaning up the following positions, and after the shakeout, it can usually pull up again.

2. Trading volume coordination

Selling: When selling, the trading volume increases but there is no substantial rise, which is a typical case of pulling up to sell. Frequent volume spikes at high positions, with active trading but no price increase, indicate that the main force is gradually exiting.

Washing: During washing, trading volume may decrease, aiming to clear out floating chips and make room for subsequent increases. Once the chips are cleaned out, the volume will gradually increase again for another attack.

3. Changes in trend before and after a surge

Selling: Selling usually occurs at a high position after a continuous surge. A wave of explosive rises attracts everyone to enter the market, then the main force gradually throws out chips, and finally, the price begins to weaken.

Washing: Washing generally occurs in the early or mid-stage of an upward trend, where the main force uses corrections to clean up following positions. Once the small retail investors sell off their coins, the price will rise again, completing the chip recovery.

4. Market sentiment

Selling: The main force will accompany some positive news when selling, and may even guide everyone to take over through news, but those who truly understand the market will feel that it is a bit "too lively."

Washing: During washing, market sentiment is low, and many retail investors can easily be scared away by large negative candles. At this time, public opinion will remain neutral or bearish, but traders who pay attention to details can find that the main force has no real signs of leaving the market.

Mainstream selling and washing each have their own tricks, and the key is to look at trading volume, K-lines, and market sentiment. Low position washing and volume-driven surges are the real washing, while mainstream selling usually occurs at high volume fluctuations. In a word, observe calmly and do not follow the trend!