When the price is at a peak, you can still sell and someone will buy – so who are the buyers?
There are 5 main groups of people/events that could be 'buyers at the peak':
1. FOMO investors (retail)
They are those who don't want to miss out on the price increase.
When they see strong price increases, good news, and the community cheering → they jump in to buy.
They do not perform technical analysis or understand market cycles.
🧠 Example: a coin rises 300% in one week → FOMO buyers rush in at the peak.
2. Big players/sharks secretly take profits
Sometimes big players use limit buy orders at high levels to prevent the price from falling immediately, in order to gradually offload their holdings.
They buy and sell alternately to create the illusion that the market is still strong.
🔁 In reality: they create liquidity to sell out themselves.
3. Trading bots / Market Makers
Bots are programmed to maintain the spread (the difference between buy and sell prices).
When prices rise too high, bots may automatically place buy orders at high levels to maintain market liquidity.
🧮 But bots are not always smart – they can get swept up in trends
4. Institutions needing to match large orders
A large fund/investor may have to buy in even at high prices because:
They have long-term plans.
They need to allocate assets or match orders according to ETF/index funds
📈 They buy at the peak not because they are 'stupid', but because of their own strategy.
5. Short squeeze / Liquidation trigger
The strong price increase causes shorts to be burned → exchanges force closure by... buying at market price.
At that time, large buy orders appear not voluntarily, but due to liquidation systems.
🔥 This is a major reason why prices continue to be pushed up 'irrationally'.
In summary:
> ✅ Buyers at the peak are often those lacking knowledge, or are forced to buy (via bots, short squeeze, market mechanisms).
If you see the price at a peak and there are still many buyers, it could be:
FOMO is strong
Sharks are dumping
Liquidation orders are being triggered
👉 Therefore, be cautious when you see 'everyone is buying' at excessively high prices.
