1. What exactly do big players want from washing the market?
1.1 It's not simply to grab the coins in your hand
Many brothers think big players wash to grab retail investors' chips, but it's not that simple.
The true purpose of washing: to confuse the market, create panic, and wash out the indecisive players (floating funds). This way, the big players can acquire more coins at low prices and pave the way for future upward movements.
Simply put, it's to stabilize their position and lower costs, not just to focus on the goods in retail investors' hands.
1.2 Understanding the tactics through an example
For example, a certain MEME coin has a total of 1 billion coins, opened at $0.01. The big player first locks 50 million coins as a base, then uses a bot to confuse the price:
- Step one: raise the price to $0.03 to attract chasing.
- Step two: pretend to dump, continuously drop 15% each day for three days.
- Step three: spread rumors 'the team has run away', scaring retail investors to sell.
- Step four: buy back at low prices, then pull up to $0.05 to make a profit and leave.
Result: the big player's cost drops from $0.012 to $0.008, their holdings increase from 50 million to 80 million coins, making it easier to pull up the price.
1.3 Why wash? To pull up and sell happily
If they don’t wash and pull up directly, retail investors might hold on and not sell, making it hard for the big players to unload at high levels.
Washing can filter out the timid, leaving the bullish, and then attract new investors. While pulling up, they sell while rising, cashing out at high levels and running away. For example, in the case above, the big player has a cost of $0.008, sells 70 million coins at $0.05, earning $3.5 million, feeling great.
2. If retail investors don't sell, will the big players keep washing?
2.1 If it can't be washed down, there are costs
Big players won't wash endlessly; they're using borrowed money with not low interest, dragging it out isn't cost-effective.
If retail investors stubbornly hold on, the big players will either intensify their efforts (with more aggressive dumping or scary news) or take the opportunity to pull up directly.
The goal is to acquire enough chips at a low cost, and when enough is gathered, start acting.
2.2 Where is the limit?
If retail investors are optimistic and not selling, big players might:
- Be tougher: hit harder to scare you into giving it up.
- Forget it, just pull: get 70%-80% of the chips to control the market and then pull up to sell.
So they won't wash endlessly; they adjust according to the situation.
3. How to tell if it's washing or running away?
3.1 The difference between washing and unloading
- Washing: after dropping, it will rise again, with the overall trend upward, accumulating at low levels.
- Unloading: continuously dropping, dwindling trading volume, trend downward, cashing out at high levels.
What to look at? High turnover rate indicates washing, low indicates unloading; price rising with moving averages indicates washing, breaking below the turning point indicates unloading.
3.2 Common washing tactics
- Flash crash in the market: a day of sharp decline and then a rebound, scaring you to sell.
- 5-day line wash: drop to the 5-day line and then rise, a short-term tactic.
- 20-day line wash: medium-term pullback, stabilize and then rise again.
- Triangle wash: fall back from a high position and then rise, common in the early stages of a big bull market.
4. What should retail investors do?
4.1 Don't panic, hold on to the cheap goods
If the cost is low, don't be afraid; at the bottom, look for concentrated chips, high turnover rate, and accumulated trading volume; after large orders press down, it often rises.
4.2 Look for signals, don't guess blindly
Don't think you understand; use moving averages and trading volume to judge, don't randomly throw or chase.
4.3 Don't go all in, be cautious
In the coin circle, big players are ruthless; diversify your investments, don't put everything in one coin.
Lastly, a few words
Brothers, big players wash to buy low and sell high, not just to grab the coins in your hand. If retail investors don't sell, they won't keep washing; over time, they can't bear the cost and will either hit hard or pull up.
Stay calm, hold on to low-cost chips, see the trend clearly, don't be a victim, and you can still enjoy some benefits with the big players.
The coin circle is a battlefield; understanding big player tactics allows you to survive longer! Let's encourage each other!