!! Collector's level valuable information !!
Analysis → Position building → Trial trading → Consolidation → Initial increase → Washout → Price increase → Selling off → Rebound → Sell-off → Cycle repeats... Complete analysis of the operator's process:
Preparation stage: Before starting to intervene in a specific cryptocurrency, the operator will collect comprehensive information about the project, including total chip quantity, unlocking situations for precise statistics, the cost of investors across different levels, chip distribution, and community enthusiasm assessments, among others. After gathering the information, they will set a target for price manipulation based on the scale of funds they can mobilize.
1, position building stage
Before building positions, operators will conduct various investigations covering market sentiment, BTC market trends, macroeconomic conditions, and policy risks. Typically, operators choose to enter the market when the outlook is generally unfavorable, market sentiment is low, inexperienced investors' confidence is shaken, and pessimism prevails regarding the project's future. As the saying goes, when retail investors are fearful, operators are greedy. Depending on the strength of the operator, their holding ratio may vary; short-term operators can control 10% - 30% of the chip quantity to operate, while long-term operators often need to hold more than 40% of the chips, although this ultimately depends on the operator's strength. Generally, operators do not build positions at high prices.
2, position building stage
The operator's methods for building positions mainly include the following:
Negative news stockpiling: Using negative news in the cryptocurrency space, such as project technical failures or rumors of stricter regulations, to suppress prices, triggering panic selling, thereby absorbing chips at lower prices.
Short-selling trap: Creating a false appearance of declining prices through technical means to induce retail investors to sell, while the operator absorbs chips at lower prices.
Massive buying: Concentrating funds to buy a large amount of the target cryptocurrency in a short period, increasing trading volume, attracting trend-following investors, and secretly accumulating chips.
Rebound stockpiling: During the rebound phase following a decline in coin prices, gradually buying in to expand holdings, taking advantage of some investors' psychology of breaking even or taking profits.
New project ambush: When the target cryptocurrency's associated projects have major technological upgrades, new application scenarios, or strategic partnerships expected, building positions in advance.
3, trial phase
In this stage, the operator slightly raises or suppresses prices to observe market buying and selling behavior, trading volume, order conditions, and emotional fluctuations, understanding key information such as chip locking levels, strength of trend-following, resistance and support levels, etc., providing the basis for fine-tuning subsequent trading strategies. However, trial trading is not mandatory; some operators may skip to price increases or take other actions based on their keen market intuition and rich experience, with the timing of trial trading being flexible and applicable throughout the entire process.
4, consolidation stage
Consolidation aims to optimize chip structure and accumulate upward momentum. Depending on the price position, it can be subdivided into low, middle, and high consolidation. The price trend usually alternates between rising, falling, and consolidating, with consolidation occupying a significant amount of time. During this stage, price fluctuations are gentle, and direction is unclear, testing investors' patience. Operators use this opportunity to solidify their holding costs, clean up floating chips, and wait for the right moment to increase prices. This stage often tests the patience of inexperienced investors, as the price movements can be bothersome.
5, initial increase stage
After completing the preliminary groundwork, the operator initiates the initial price increase, moderately raising the price to attract market attention, stimulating enthusiasm for outside funds to enter, and reducing subsequent resistance to price increases. However, to avoid prematurely revealing intentions and attracting trend-following and regulatory scrutiny, the initial increase is limited, followed by a slight price drop to clean up profit-taking positions and unstable chips, solidifying the foundation for subsequent steady increases.
6, washout stage
After accumulating a certain amount of chips, the operator may adopt a strategy of suppressing the price to drive away trend-following investors and force early holders to sell. This not only allows for more chip absorption at lower prices, reducing holding costs, but also eliminates weak-willed retail investors, decreasing selling pressure during subsequent price increases and creating conditions for selling at high prices.
7, price increase stage
After going through a series of operations including initial stockpiling, trial trading, and washout, both bulls and bears have formed a high degree of consensus to some extent. After the operator controls a large number of chips and stabilizes the market situation, the price increase becomes a natural outcome. During the price increase stage, the price rises rapidly as the operator cleverly utilizes market enthusiasm, technical indicators, and favorable news to attract more investors to buy in, pushing the price to new highs and achieving substantial profits.
8, selling stage
As the saying goes, 'To buy is to be a novice, to sell is to be a master.' Selling is the key goal of the operator. Successfully distributing chips is essential to turning paper profits into actual gains. Distribution is the most critical stage in the process of operating, as any operator can only turn their paper profits into actual gains by successfully distributing their chips. Therefore, operators will utilize various strategies, such as creating a false sense of market prosperity, using media to guide emotions, and employing related accounts for fake trades to create an active atmosphere, enticing unaware investors to take over, ensuring smooth selling.
9, rebound stage
After a decline in coin prices, a brief recovery often occurs, known as the rebound phase. When the operator sells off, causing the price to drop near the profit line, a slight price increase may occur due to some inexperienced investors' 'bottom fishing' psychology and the need to offload remaining chips. However, this is often short-lived, and after the rebound ends, the price is likely to continue to fall, potentially reaching new lows. Investors who hastily 'bottom fish' may easily fall into a trap. The rebound phase is a secondary stage in the operator's process, and some targets may not experience a rebound.
10, sell-off stage
Passive selling: In the event of sudden negative news, such as significant technical vulnerabilities, disputes among project parties, or sudden changes in regulatory policies, a panic selling wave may occur in the market, forcing the operator to sell off positions to minimize losses. This behavior may lead to the operator abandoning their position or looking for opportunities to buy at lower prices after the sell-off, re-establishing control over the market.
Selling off after high price: After the operator successfully sells off at a high price and locks in profits, the remaining small amount of chips is no longer significant. At this time, selling off not only suppresses the price but also allows for subsequent low-price accumulation, without needing to care about market image or costs.
Selling off to pave the way for a new market: After a round of speculation ends, operators may use their remaining chips to intentionally sell off, creating a bearish atmosphere, inducing investors to sell, while also testing the market's bottom and investor psychology, setting the stage for a new market cycle. No matter what type of operator it is, they always go through the three basic stages of building positions, price increases, and selling off. By thinking from the main operator's perspective and understanding their trading intentions, one can follow along to benefit from the market!
The cryptocurrency market is always repeating yesterday's story. The sectors being speculated on change, prices change, and the people buying and selling change, but human nature does not change.
Let's encourage each other!
