Having been in the crypto space for many years, I have seen countless people understand the market 'too simply':
'If more people buy, the price goes up; if more people sell, the price goes down.'
This sounds reasonable, but if you really use it for trading, you'll only end up as a bag holder in 'wild price fluctuations.'
✅ 1. Does the market really have no major players?
Yes, in the long run, there are no big players or major forces in the market because prices ultimately return to value, which cannot be manipulated by anyone for long.
But in the short term, it can be manipulated, especially the fluctuations at the 5-minute and 15-minute levels, which can be 'artificially created.' Who creates it?
It's not what you imagine as 'the trader,' but rather liquidity controllers, also known as quote providers, market makers, LPs, and quantitative institutions.
✅ 2. The true composition of the market: active aggressors vs passive quote providers
Active aggressors: that’s you, me, and most retail investors, who click 'buy' or 'sell' and want to transact immediately at the current price.
Passive quote providers: those who have placed orders in advance, waiting for you to take their orders.
What truly determines the market is: the side with passive orders.
If you want to trade, someone must be willing to transact with you at that price. Otherwise, you'll have to buy at a higher price or sell at a lower price.
This is why we often say:
❝ The market is determined by those who provide prices, not those who click the order button. ❞
✅ 3. Wild price fluctuations are not due to many orders placed, but because no one is placing orders.
Let me give you an example:
Currently, the price of Bitcoin is at 108000, and at a certain second, 100 people want to sell a total of 500 contracts.
If there are 500 buy orders (liquidity) at this price, OK, all executed, and the price remains unchanged.
But if there are only 100 buy orders at this price, the remaining 400 orders will keep pushing down until they find a counterparty at a lower price.
This is called slippage, which means 'lack of liquidity.'
What really makes prices move is not the buyers but whether the quotes exist and whether there is enough volume to absorb.
✅ 4. Retail investors look at charts, market makers look at the order book.
What are you studying? MACD, KDJ, double tops, triangles, moving average entanglements...
What are they looking at? Order book, depth of orders, speed of order cancellations, strength of counterparty absorption.
Market makers do not chase prices up and down; they operate within a range to profit from the spread, watching you place orders; whoever loses control of their emotions will lose money, while they just quietly collect fees.
You think the market suddenly rises because of large purchases, but in fact, it’s because no one is placing sell orders.
You think the market suddenly crashes because someone is dumping, but in fact, it’s because there are no buy orders above.
✅ 5. Thus, the true trading mindset must change:
❌ Incorrect understanding:
Look at charts for patterns, guess the direction.
Emotional trading, chasing prices up and down.
Ignore the order book and liquidity.
✅ Correct understanding:
Assess whether there is quote support in the price range (= consolidation)
Is the breakout caused by the active withdrawal of quotes (= trend)
Look at whether aggressive orders can absorb passive orders (= confirm the strength of the direction).
So
The candlestick you see does not represent the true intentions of the market;
What truly drives price changes is whether someone is willing to transact at that price with you.
You want to buy at 108000, OK, but if no one is willing to sell at that price, you'll have to buy at a higher price.
This logic is the core of supply and demand and the truth of trading.
Eliminate a lot of the impulse to chase prices up and down.
Understand the intentions behind the market movements
Transform from being a 'retail investor chasing orders' into a 'professional trader following quote logic.'