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We retail investors are actually afraid of two things when trading cryptocurrencies: one is the fear of the main force washing the盘—selling when it rises; the other is the fear of the main force unloading—buying when it falls. So how do we distinguish whether the main force is washing the盘 or unloading? Let me reveal the true intentions of the main force from four aspects. This is top-notch content; I recommend you save it and read it multiple times.
1. Let's look at the trading volume. When the main force is washing the盘, the trading volume must be shrinking. Because before washing the盘, they have already grasped most of the chips, so during the washing process, they won't make any significant moves. But unloading is different; the main force can provide unlimited chips to retail investors. Whatever you want, they will give you. Therefore, at this time, the trading volume must be increasing.
2. Let's look at the relative position of the coin price. If the coin price has only risen by 10%, then at this time, the main force doesn’t have much profit space, and it is likely to be washing the盘. Conversely, if the coin price has already doubled, the main force has already made a substantial profit; for stability's sake, they will definitely unload steadily.
3. Let's look at the intraday charts. Washing the盘 is meant to scare away uncertain retail investors, so the main force will use a method of slow rise and rapid fall to achieve the goal of shaking out positions. When unloading, the main force has to pretend that the market is relatively stable to lure retail investors in, so the amplitude on the intraday chart will be controlled relatively small.
4. Finally, look at the chip distribution. During the washing process, chips will remain at the bottom, while during unloading, chips will constantly accumulate at high positions because the main force is continuously throwing out chips. At this time, retail investors will be lured into the market to take over.
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