A market maker shakes out positions; it was never meant for your little stash of tokens.
After ten years of crypto trading, I’ve seen too many versions of the same play. The techniques may vary endlessly, but the core is always the same: swap out low-cost holders.
Let me break down a typical example into four stages.
Stage 1: slow, gloomy sell-off with no volume
Price grinds down from 1.2 to 0.9. The chart is lifeless, with no decent rebounds.
This stage is the most grueling: your account value shrinks day by day, and retail traders begin to doubt themselves—"Did I pick the wrong project?""If I don’t run now, I’ll be wiped out."
So stop-loss selling comes out in batches, and the market maker quietly accumulates around 0.9—calmly “picking up beans”: the drop is slow, volume is low, and holdings are quietly transferring.
Stage 2: sharp drop, then a rebound—meant to bury the bottom-fishers
Suddenly a big red candle dumps price to 0.7, then quickly rallies back to 0.95.
This V-shaped reversal is the easiest to trigger impulsive buying; even experienced traders can’t resist.
Once this new batch of money enters, the price is pushed below the previous low again to 0.65—bottom-fishing becomes a live burial, and those who chased the dip end up cutting losses in tears.
Key traits: the rebound is fast but doesn’t last, volume can’t ramp up, and the prior low gets tested repeatedly.
Stage 3: teaming up with FUD to scare off the last group
News like “the team has run away” and “whales are cashing out” spreads everywhere. Price keeps getting hammered down to 0.5, and in the community it’s nothing but cries of despair.
And in that range, on-chain data often shows continuous large transfers.
Key traits: the bad news comes frequently and “perfectly” timed, but the on-chain activity doesn’t match.
Stage 4: quick pullback to form the “golden pit”
Using relatively little capital, the market maker rapidly pulls the price up, bringing it back to around 1U. Visually, it’s the standard golden pit pattern.
People who cut losses are still hesitating—while new money has already rushed in. With that one cycle, the full swap of liquidity and holdings is completed.
After a decade, here’s the one thing I’ve figured out: the essence of a shakeout is redistribution of chips.
The market maker isn’t trying to steal your coins—it’s trying to change who holds them: wash out the old low-cost, long-term holders, then replace them with new higher-cost holders who are more likely to be harvested in the next wave.
So the next time you see a crash, don’t just curse the market maker. First, ask three questions:
During the drop, is volume shrinking or expanding continuously? Do the timestamps of the bad news feel overly “convenient”? After the drop, was there a volume-backed recovery that reclaims key levels?
Once you see it clearly, you’ll know: this isn’t a “buy-the-dip signal,” it’s a swap-in-the-process—what you need to do is not be one of the people who get swapped out.#Zcash上涨6% $ETH $BTC
After ten years of crypto trading, I’ve seen too many versions of the same play. The techniques may vary endlessly, but the core is always the same: swap out low-cost holders.
Let me break down a typical example into four stages.
Stage 1: slow, gloomy sell-off with no volume
Price grinds down from 1.2 to 0.9. The chart is lifeless, with no decent rebounds.
This stage is the most grueling: your account value shrinks day by day, and retail traders begin to doubt themselves—"Did I pick the wrong project?""If I don’t run now, I’ll be wiped out."
So stop-loss selling comes out in batches, and the market maker quietly accumulates around 0.9—calmly “picking up beans”: the drop is slow, volume is low, and holdings are quietly transferring.
Stage 2: sharp drop, then a rebound—meant to bury the bottom-fishers
Suddenly a big red candle dumps price to 0.7, then quickly rallies back to 0.95.
This V-shaped reversal is the easiest to trigger impulsive buying; even experienced traders can’t resist.
Once this new batch of money enters, the price is pushed below the previous low again to 0.65—bottom-fishing becomes a live burial, and those who chased the dip end up cutting losses in tears.
Key traits: the rebound is fast but doesn’t last, volume can’t ramp up, and the prior low gets tested repeatedly.
Stage 3: teaming up with FUD to scare off the last group
News like “the team has run away” and “whales are cashing out” spreads everywhere. Price keeps getting hammered down to 0.5, and in the community it’s nothing but cries of despair.
And in that range, on-chain data often shows continuous large transfers.
Key traits: the bad news comes frequently and “perfectly” timed, but the on-chain activity doesn’t match.
Stage 4: quick pullback to form the “golden pit”
Using relatively little capital, the market maker rapidly pulls the price up, bringing it back to around 1U. Visually, it’s the standard golden pit pattern.
People who cut losses are still hesitating—while new money has already rushed in. With that one cycle, the full swap of liquidity and holdings is completed.
After a decade, here’s the one thing I’ve figured out: the essence of a shakeout is redistribution of chips.
The market maker isn’t trying to steal your coins—it’s trying to change who holds them: wash out the old low-cost, long-term holders, then replace them with new higher-cost holders who are more likely to be harvested in the next wave.
So the next time you see a crash, don’t just curse the market maker. First, ask three questions:
During the drop, is volume shrinking or expanding continuously? Do the timestamps of the bad news feel overly “convenient”? After the drop, was there a volume-backed recovery that reclaims key levels?
Once you see it clearly, you’ll know: this isn’t a “buy-the-dip signal,” it’s a swap-in-the-process—what you need to do is not be one of the people who get swapped out.#Zcash上涨6% $ETH $BTC
