The core logic of the dealer's wash is to precisely control the market rhythm to force the clearance of retail investors' positions. The main force will never tolerate too many retail investors remaining — this would severely disrupt its subsequent lifting and selling plans. As long as retail investors continue to monitor the market, the main force can always find a way to break through their psychological defenses.
Among the many wash methods, the following three tricks are the most capable of breaking the holding strength of retail investors, and can be regarded as the dealer's 'trump card':
'Grinding' Strategy: Consuming Patience: The main force often operates with a long-term 'bottom grinding' strategy, where the coin price fluctuates in a low range for an extended period. It often rises by 1U and then immediately retraces by 2U. In this back-and-forth market, impatient retail investors find it difficult to endure the prolonged ordeal and ultimately choose to cut their losses and exit.
'Pit' Strategy: Creating Panic: If there are still many retail investors holding firm after the 'bottom grinding', the main force will decisively initiate the 'digging pit' mode. By concentrating funds to suppress the price, a rapid volume drop in the price is created, generating a panic atmosphere of 'breaking down and plunging, with no bottom in sight.' Retail investors, in fear of 'not knowing when the decline will stop, not knowing where the bottom is,' will mostly be forced to hand over their positions, completely missing out on the subsequent market.
'Veiled Threats and Inducements': Dual Pressure: If the effects of the first two strategies do not meet expectations, the main force will adopt a combination strategy of 'veiled threats and inducements' for further cleaning. First, it will slightly raise the coin price, allowing trapped retail investors to see hope of breaking even or making a small profit, enticing some to 'take the profit'; for those retail investors who are still unwilling to exit, the price will then be controlled to slowly decline again, using persistent downward pressure to break their psychological expectations, ultimately forcing this group to give up their positions. #币圈 #区块链 #加密货币