In the cryptocurrency market, the movement of main funds often determines the rise and fall of prices. However, the main force usually hides its intentions before exiting, confusing retail investors through a series of manipulation techniques. Here are the two major characteristics before the main force exits; understanding these can help you avoid becoming a 'bag holder'!
Characteristic 1: High-volume oscillation at high levels, creating an illusion.
The main force's exit must occur in the high area after a continuous large increase in coin price. At this time, the main force will attract retail investors to take over using the following methods:
Volume increase or significant gap up: The main force quickly raises the coin price or opens significantly higher to attract a large number of following investors.
Massive oscillation at high levels: When the coin price reaches a high level, the main force starts oscillating at high levels, creating the illusion of a 'washout'. For example:
On the first day, it surged and then fell back, with the main force selling some shares;
On the second day, there was a significant drop in the morning, followed by a violent surge in the afternoon, creating the illusion that 'it cannot drop'.
Repeated turmoil, retail investors relax their vigilance: After several oscillations, retail investors mistakenly believe the coin price will rise again, so they increase their positions. At this time, the main force has quietly exited.
Key point: High-volume oscillation at high levels is a typical characteristic of the main force exiting; retail investors should be vigilant!
Characteristic 2: The higher the top, the stronger, the main force performs vigorously.
You may ask: 'If the main force has exited, why can the coin price still reach new highs?' In fact, this is the cleverness of the main force:
A massive amount of chips, unable to exit all at once: The main force has too many chips in hand, and it is impossible to sell them all at once like retail investors.
Pulling and exiting while maintaining a strong illusion: The main force stimulates retail investors' desire to chase by repeatedly smashing and raising the price, even reaching new highs.
Technical indicator divergence: Reflected in the trend, the coin price appears strong, but the technical indicators (such as MACD, RSI) have shown divergence or divergence, which is a signal for the main force to exit.
Key point: The higher the top, the stronger the coin price, but the divergence of technical indicators often indicates risk.
Summary
The two main characteristics of the main force exiting can be summarized as:
High-volume oscillation at high levels: attracting retail investors to take over;
Strong performance at the top: creating illusions to cover up selling intentions.
Retail investors must be vigilant about these signals when trading to avoid taking over at high levels. Remember: When the coin price shows high-volume oscillation or divergence in technical indicators after a continuous large rise, it is very likely that the main force is exiting!