Why do large amounts of unlocked altcoins need to be sold?
First, let us understand the concept of liquidity in the K-line.
Taker liquidity can be simply understood as when selling altcoins, the market needs to have USDT to take your sale.
Maker liquidity can be simply understood as when buying altcoins, the market needs to have corresponding altcoins to buy for you.
1. When the coin price falls below the starting point of this round, it means that above the starting point, no matter where you buy, you will be trapped.
Here, it can be understood that if it rebounds to every position of large-volume decline, there will be more or less selling orders, which will increase the cost of Taker liquidity.
Here we can know that as long as it rebounds to the starting point (large-volume decline), there will be long positions that take profit. Air forces that short in the range will increase their positions and short here.
Then there will be very dense liquidity here. If the air forces are liquidated, at least the current price needs to deviate from the increase of about 15% (accurately explode 10 times the contract) to be liquidated. Only then can the price of the currency rebound further. This is also the liquidity "supply zone" that Qiu Rong has been talking about. This is a moment with a very low winning rate but a very high odds. In options, this is to chase Gamma. It is a very lottery way of playing. 2. The first point should be finished. The rebound after the decline, here is the continuous decline. When the price of the currency reaches a new low, or a new low this year, it means that there is no liquidity to take over below (here you can think about it the other way around. When you encounter the starting point and the trapped point, there will be selling pressure to prevent the rise) and selling coins will often not be tightened. Therefore, when there is no liquidity/liquidity suddenly decreases, the price of the currency will fall sharply. Take#ARBas an example. After falling below the starting point on September 12, 23, there was a huge drop in volume, and the subsequent rebound could not stand firm at the starting point (0.75U). Then, in the subsequent rebound, it is difficult to reach the position of large-volume decline. The performance on the K-line is one step at a time. Every time the rebound approaches the starting point, it will immediately stop rising (stop rising)
