🗣 MARKET MAKERS won’t tell you this

Let’s break down what they actually do.

There are a few main functions:

⚫️ Market makers place buy and sell orders for tokens, providing liquidity and reducing the spread.

⚫️ They use strategies to manage risks and balance their positions.

⚫️ They automate the process through algorithms, adapting to market changes.

⚫️ They collaborate with exchanges, receiving bonuses for providing liquidity.

⚫️ They constantly optimize strategies to reduce risks and increase profits.

In general, they make the charts look predictable and draw traders’ attention.

🔈 Market makers often work against the crowd to "shake off extra passengers" from the price movement. They can manipulate support levels 📊, abruptly dump liquidity, or create false technical analysis signals. For example, they might form descending triangles or channels to trigger mass selling while preparing to buy assets at lower prices themselves.

📉 I’ve provided examples of market maker activity in this post. Even with the naked eye, you can see how $STRK is being held at one level, not allowed to move anywhere.

⚡️ Also, GotBit and Andryunin, from THIS post, became famous in the world of "market making" thanks to $BONK and its pumps. You can see them in the second screenshot attached.

❓ WHAT METHODS DO MMs USE?

1️⃣ Counter-trading

Market makers can work against the trend. If the price is rising, they sell to create the illusion of oversupply and trigger panic selling. When the price falls, they buy to support demand and prevent a crash.

2️⃣ Volume manipulation

Market makers can place large buy or sell orders to create the impression of strong interest in an asset. This prompts other traders to take action. Often, these orders are never executed, meaning they might just be for show—their goal isn’t real trading but market manipulation. This approach is called wash trading (Wikipedia), and it’s illegal, as I mentioned in the post about GotBit.

3️⃣ Holding levels

Market makers place large orders at key levels, creating a "wall" of bids or asks to hold or push the price in the desired direction.

4️⃣ Creating a price channel

They can hold the price within a narrow range, creating the appearance of stability, attracting traders, and controlling the price's further movement, gradually shifting the channel’s boundaries.

🔚 CONCLUSIONMarket makers play a key role in cryptocurrency markets, but their methods can be both helpful and manipulative. Understanding their strategies will help you better navigate market dynamics and make more informed decisions.