The existence of insider trading in the market is an undeniable fact, but just as all financial markets struggle to escape such gray areas, this is essentially a byproduct of human nature's game. Take, for example, the recent extreme case of using 50x leverage to go long and short; however, this is just a minor episode. Ultimately, it cannot escape the underlying logic of the tug-of-war between bulls and bears—after all, market trends are ultimately the result of the struggle between buyers and sellers.
The brilliance of this ecosystem lies in the ecological niche differences of the participants. When different trading strategies form specific patterns, they often lead to unexpected market resonances. For instance, when most investors anchor their operations to the daily MA120 indicator, this moving average evolves from a simple technical line into a psychological defense line for the group, triggering a self-fulfilling prophecy effect of support or resistance.
Rather than hoping to capture every fluctuation, it is better to deeply cultivate the market patterns you are familiar with: just like in stocks, where some people specialize in trends, some in ignition, and some in ceiling caps. It’s best to be clear about whose money you are making; if you don’t understand, you might just be the fish.
For example, the wave of selling that started on February 24th (the sub-figure shows contract positions) is characterized by a relatively smooth decline. The increase in positions often occurs not at the start of the decline, but rather during the halfway point when there is a certain acceleration. Looking at historical trends, one can find that there are funds that prefer to exploit this pattern; their profits come from the chain reaction triggered by long positions being liquidated. This strategy is similar to the 'vulture strategy,' which specifically preys on accelerated market movements when liquidity is exhausted.$BTC