The sharp price fluctuations on short timeframes and the change in direction within seconds are no longer random behavior in the crypto markets, but rather a direct reflection of the dominance of bots over a large volume of trading. These algorithmic systems, which include scalping bots, market makers, and high-frequency trading, not only react to the market but also create and direct it often.
According to reports from specialized platforms such as Investopedia and Cryptolume, the proportion of trades executed via bots exceeds 60% during certain periods, especially in high liquidity assets. These systems exploit minor price differences, execute thousands of orders in seconds, or even employ strategies such as Spoofing and Arbitrage to maximize profits and confuse individual traders.
Studies from regulatory bodies like the FCA indicate that the rapid development of artificial intelligence in the markets has outpaced the ability of regulatory authorities to contain it, threatening transparency and increasing market fragility during sudden fluctuations. Recent data also shows that many of these systems do not seek to achieve significant profit from each trade but are satisfied with very small percentages that accumulate continuously.
The price movement resulting from these systems gives the market an "artificial" appearance, making traditional technical analysis insufficient and necessitating a deeper understanding of the nature and methods of bots.
