In the cryptocurrency market, it is crucial to grasp the timing of bottom-fishing for those currencies that have experienced several times of surge and then plummeted. To profit from such fluctuations, it is necessary to deeply understand the strategies of the dealers and the psychology of retail investors.

The dealer needs to find an opportunity to exit after the currency price soars, while retail investors often try to bottom-fish when the currency price is cut in half. In fact, in the process of the currency price falling from the highest point, there are not many people who dare to continue to short, so there are relatively few counterparties in the market.

In order for the dealer to make money and exit successfully, it is necessary to create enough counterparties. They may choose to quickly smash the market when the currency price is still hot, fall to the bottom-fishing price that retail investors think is suitable, and then let the currency price go sideways to attract retail investors to buy.

In this process, the dealer may make several small pull-ups and smashes at about 50% of the halved price. This small fluctuation is not enough to scare away retail investors, nor is it enough for them to leave the market with profits. At the same time, it can attract more retail investors to enter the market and provide enough counterparties for the dealer.

When the counterparty accumulates to a certain extent, the dealer may not stay for too long. Once there are enough retail investors on the bus, they will continue to smash the market until the new retail investors face the situation of being cut in half again. When these retail investors cut their losses and leave the market, it is the time for the dealer to close their long positions.

Therefore, for the dealer, the sideways stage after the coin price is cut in half is very critical. They must attract enough counterparty like attracting customers to ensure that they can exit safely in the next operation and maximize their profits.

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