Survival Guide for Extreme Market Conditions in the Crypto Market: The Life and Death Struggle between LPT and WCT
LPT's Sudden Surge Revelation: Retail Sentiment and Fee Mechanism Game
When LPT suddenly surged by 50% in Korea, retail investors shorting led to the perpetual contract fee rate skyrocketing to the -2% circuit breaker threshold. At this time, Binance adjusted the 4-hour fee settlement to 1 hour, revealing market liquidity gaps—spot and contract price differentials broke critical points, and arbitrageurs precisely targeted short positions, achieving a reversal of long and short positions.
The Truth Behind WCT's Plunge: Whale Control and Fee Traps
WCT's drastic drop from 1.3 to 0.65 exposed the whale's control tactics: after establishing a massive short position at high levels, they used spot selling to suppress prices. The -2% fee was in fact a signal for the whale to short, and retail investors, lured by the fee, opened long positions and ended up trapped. When it broke through key moving averages, the whale took advantage to create a chain of sell-offs.
The Three Iron Rules for Navigating Bull and Bear Markets
Fee Circuit Breaker Warning: Extreme fee rates of ±2% are often precursors to trend reversals, and should be assessed in conjunction with trading volume, as seen when WCT plunged with Upbit's trading ratio at 35%.
Main Force Cost Mapping: The horizontal range of LPT's upward continuation at $15.5-$15 is a watershed for long and short positions, and a breakthrough requires caution against long bait traps.
Time-Space Arbitrage Window: The settlement cycle difference at exchanges creates impulse arbitrage opportunities, such as Binance's 8 hours → 1 hour, but leverage must be strictly controlled.
Practical Sayings
"Do not follow the trend at the peak of fees, watch moving averages in the game between whales and retail;
Spot price movements should be a warning first, liquidation often occurs in times of greed."
In the current market environment, it is advisable to adopt the 'three no strategies': do not chase after a rise of more than 30%, do not trade cryptocurrencies with contract ratios exceeding 30%, and do not touch altcoins with daily trading volumes below $100 million. History has repeatedly proven that the huge profits in the crypto market always come with extreme risks, and survival is the top priority.
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