Recently, due to insufficient liquidity and sluggish trading volume, the main players have begun to pull up the small-cap and small-circulation alts for profit. Based on several alts in recent weeks, the main players' market-making methods and operation ideas are summarized as follows:
The selection of hot altcoins can be based on the daily spot trading volume, market value, contract open interest, and contract fee rate. If the contract open interest is much larger than the market value and the circulation volume is around tens of millions, the altcoin has signs of pulling the market and can be paid special attention to. The buying conditions are:
1. The top three in the list of rising stocks;
2The rate is positive or 0;
3. Spot trading volume reaches 60%+ circulating market value;
4. The contract holding volume is greater than the circulating market value;
Reference value 1: The increase from the lowest price to the highest price within 48 hours is less than 25% and greater than 15%;
Reference value 2: The 4-hour trading volume has increased continuously, and the 24-hour trading volume has continued to increase.
At the same time, because the copycats that pull the market usually have low market capitalization and low circulation, they cannot maximize profits by directly smashing the spot market. The main method of selling is to use the contract to make the rate negative, and after the rate is maximized, the high-multiple short positions are blown up. At the same time, the main force arranges short positions at high levels, sells at high spot prices, and locks in profits by shorting contracts. Therefore, these copycats are all smashing the market with a single word. When the negative rate is fully raised, it is usually one of the signals that the token has reached its peak. If the spot price is higher than the contract, it means that the main force is arranging short positions and the spot price has been raised to sell. The negative rate maximum and the spot contract difference can basically be regarded as a signal of smashing the market.
