The main players have washed for 3 months in the crypto world? Don’t panic! When these 3 signals appear, hold your spot positions with closed eyes!
"Teacher, my XX coin has dropped for three whole months, and I've had two liquidations on contracts. How much longer will this washing go on?" Recently, the community has exploded— from AI concept coins to Layer 2 leaders, from new public chains to DeFi blue chips, this wave of 'marathon-like washing' in the crypto world has led countless retail investors to collapse and cut losses. As an old investor who has experienced three bull markets, today I will use on-chain data and historical cycles to unveil the truth: the harsher the main players wash, the more you should hold onto your spot positions!
Washing in the crypto world is three times harsher than stocks with these 3 major tricks.
In the crypto world, 'washing' is never just a simple downtrend—there's 24-hour trading, leveraged contracts amplifying panic, and whales playing 'fake drops', even regulatory news can be used as 'washing tools'! Remember these 3 unique 'washing codes' in the crypto world:
1. Time Trap: The longer the cycle, the cleaner the chips.
In stock markets, washing is seen on weekly charts, while in the crypto world, you need to look at 'halving/upgrading/interest rate cut cycles'! For example, before Bitcoin's halving in 2024, mainstream coins averaged 6-8 months of washing (reference: LTC fell for 7 months before its halving in 2023); this year, a certain Layer 1 public chain's mainnet was delayed for 3 months, and the main players took the opportunity to wash for a full 14 weeks—washing before major positive news is calculated by 'quarter'!
2. Volume Disguise: Shrinking volume downtrends are the real washing.
In stocks, look at trading volume, in the crypto world, look at 'exchange reserves'! Use on-chain tools (like Nansen) to check: if a certain coin continues to fall, but exchange BTC/USDT reserves drop by 10% week-on-week, while whale addresses (holding >10 million) quietly increase their positions—this is the main players deliberately smashing prices to accumulate! Conversely, if exchange reserves surge during a decline, that means the main players are engaging in 'left hand selling to right hand buying' to lure in more buyers.
3. Emotional Harvest: Liquidation orders are the 'washing accelerator'.
The unique 'contract hell' in the crypto world: The main players smash through key support levels (like the $2.8 strong support of XX coin), triggering millions of contract liquidations (daily liquidation volume exceeding 500 million). When retail investors panic sell, the main players turn around and use the 'floor price' to take all the chips—remember: the larger the liquidation volume during a crash, the closer the end of the washing!
3 tips to teach you 'counter-washing': Hold your spot steadily without panic.
Knowing the tricks, you should also know how to 'counter-kill'! Here are 3 effective 'holding strategies' tested by veteran players in the crypto world:
① Use the 'on-chain cost line' to lock in positions.
Open on-chain analysis tools (like CryptoQuant), enter the coin you hold, and pull out the 'average network cost'—if your holding cost is below 90% of retail investors (i.e., in the 'green zone'), it indicates that the main players have not finished washing, so hold steady! For example, if a certain DeFi leader has an average cost of 1.2 now, and you bought at 0.8, what’s there to fear?
② Use contracts for 'hedging protection', but don't touch leverage.
Afraid you can't hold through the washing? Use 10% of your position for 'spot hedging' (like holding spot XX coin, opening an equivalent short position)—this way, even if the coin price drops by 10%, the spot loses 10%, the contract gains 10%, and your total position doesn't lose! But remember: leverage in the crypto world is a 'death knell', holding spot is the 'ballast'!
③ Keep a close eye on 'community consensus': If whales are buying the dip, what are you afraid of?
The 'confidence' in the crypto world is hidden within the community! Open Discord/Telegram to see if the official has issued 'technical upgrade announcements', and check if the whale addresses (traceable on-chain) have consistently net bought for 3 days— for instance, last week, a certain AI concept coin fell below $0.5, but on-chain data showed that the 'Coinbase institutional wallet' consistently bought 20 million for 5 days, this is the signal from the main players telling you to hold steady!
Bloody case study: In 2023, a certain public chain coin washed for 6 months and rose 30 times!
In Q3 2023, before the mainnet launch of a certain new public chain, the main players used 'contract liquidations + fake bad news' to wash for a full 6 months: from 3.2 to 0.8, with daily liquidation volume exceeding 300 million. In the community, 'zeroing' theories were rampant—but on-chain data showed that a whale address quietly bought 80 million coins, and exchange reserves dropped by 40%! As a result, on the day of the mainnet launch, the coin price shot up to 2.5, and three months later soared to 12! Those who cut losses then are now regretting it deeply...
To be frank: In the crypto world, 'washing' essentially means that the main players are washing out the 'unsure retail investors' and leaving the chips for those who 'believe in value'. Each fluctuation you endure now is accumulating chips for the future 'main rising wave'!
How long has the coin you hold been washed? Share your holding coin and purchase cost in the comments section.
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