How crypto markets work.

Major centralized exchanges that hold volume dominance and have spot and perpetual markets control the prices. Their business is to sell bets to traders with leverage (loaned liquidity with collatoral backing) and use market makers to stimulate the betting. Then they use the same market makers to liquidate the bets they sold to traders.

The perpetual futures market is 100x larger in daily volume than the spot market.

This will be regulated away shortly with Clarity and Market Structure Acts but will take time to propagate to offshore jurisdictions which is where most of these exchanges are located.

Until then follow global liquidity on a high timeframe and liquidation levels on a low timeframe. This artificial volatility will be regulated out of the markets but its important for long term buyers to understand this.

On good macro news and on good crypto news traders go long so exchanges will flush the market to the downside. On good macro news and good crypto news traders go short, so exchanges will flush shorts to the upside.

I know its hard to accept but this is how it is. You can take advantage of this arbitrage until regulation. Buy the bottom of the flushes.