Who’s Buying at the Top?
When an asset is peaking, someone is still buying. But who? Here are 5 common buyers at market tops:
1. FOMO-Driven Retail Traders
They chase after parabolic moves, driven by hype and emotion—not analysis.
🧠 Usually the last ones in, they provide exit liquidity for others.
2. Smart Money Disguising Distribution
Whales and institutions don’t dump all at once.
They:
* Use buy-sell orders to hold price
* Gradually offload to retail
🎯 The market "feels strong" as they quietly exit.
3. Bots & Market Makers
Automated systems continue buying to maintain spread or liquidity.
⚙️ Bots follow code, not common sense—sometimes fueling unsustainable rallies.
4. Institutions with Strategic Mandates
Big funds may buy regardless of price due to:
* ETF rebalancing
* Scheduled allocations
* Long-term investment horizons
📊 They’re not wrong—just operating on a different time frame.
5. Forced Buyers: Short Squeeze & Liquidations
When shorts are liquidated, exchanges buy back positions at market price.
🔥 This creates involuntary buying pressure, driving prices even higher.
✅ Bottom Line
Buying at the top isn’t always irrational—but it’s rarely safe.
Ask yourself:
Who’s buying now—and what’s their motive?
If the answer is FOMO, forced liquidation, or distribution—proceed with caution.