Essential for Crypto! Full Analysis of Major Players' Wash Trading Tactics
Brothers, major players' wash trading is when the market makers throw low-priced chips to retail investors, raising the average market holding cost, facilitating future price increases to harvest profits.
Objectives of Wash Trading Clearing Obstacles for Price Increase: Shake off retail investors who are positioned at low levels to avoid being hammered during a price surge. Raising Average Holding Cost: Increase the average holding price for retail investors, which helps find buyers during high selling. Lowering Holding Cost: Market makers sell high and buy low in waves, earning the price difference while washing out positions.
Common Manipulative Tactics High-Open Nuclear Button: Explode the price at opening and then crash it, placing massive sell orders to scare out panic sellers and then buying back. Fake Drop and Smash: Directly smash the price, and when retail investors follow the trend to sell, withdraw orders to scoop up shares, causing an instant rise. Weaving Machine Control: Lock the coin price within a very small range all day, draining impatient retail investors. Violent Roller Coaster: Repeatedly harvest profits through drastic price fluctuations, using spike patterns to liquidate contract traders.
Market Signals Chaotic K-Line: Mixed bullish and bearish candlesticks, making the trend completely incomprehensible. Shrinking Volume: Decreasing transaction volume indicates that retail investors are mostly out. Key Level Defense: The market maker's cost line is the bottom line; if it breaks, run quickly, if it stabilizes, it’s an opportunity. Sideways Accumulation: Common triangle and flag consolidation patterns, once the accumulation is complete, it becomes a turning point. Remember! When encountering this kind of market, don’t panic; either lay flat and play dead or wait for stabilization signals before entering.
Why are Bitcoin spot and contract prices inconsistent?
Definitions of Spot and Contract Spot: Transactions settled and delivered immediately at the current market price, trading Bitcoin itself, requiring full funding.
Contract: Based on future price expectations, trading price fluctuations, only requiring margin (with leverage), can be held long-term, with no fixed delivery date.
Reasons for Price Differences Spot and contract prices should theoretically converge around Bitcoin, but in reality, there are differences, mainly due to:
Market Sentiment: Bullish: Expecting prices to rise, increasing demand for contract purchases, contract prices > spot prices.
Bearish: Expecting prices to fall, significant selling pressure on contracts, contract prices < spot prices.
Leverage Characteristics: Contract margin trading requires low capital usage, attracting speculators, making prices susceptible to emotional fluctuations.
Liquidity Differences: Spot and contracts are independent markets, with different depths and liquidity; large trades can lead to price deviations.
Market Nature: Spot trading involves Bitcoin itself, while contract trading involves price expectations; participant behaviors differ, making prices difficult to match at all times.
Why is the Price Difference Limited?
Funding Rate: Exchange adjustment mechanisms; when contract prices are high, longs pay shorts, and vice versa, facilitating price convergence.
Arbitrage Behavior: When the price difference is too large, traders profit by selling high and buying low (between contracts and spots), narrowing the price gap.
Market Efficiency: Fast information dissemination allows arbitrageurs to quickly intervene, preventing long-term large price differences.
Summary
Spot trading involves Bitcoin itself, while contract trading involves price fluctuations. The price difference arises from sentiment, leverage, liquidity, and market differences. Funding rates and arbitrage ensure the price difference is limited, maintaining dynamic market balance.
Recently, the cryptocurrency market has undergone a significant shift, with Bitcoin's dominance declining and altcoins and meme coins rising strongly. Various signs indicate that a prosperous period for altcoins may have arrived.
The dominance of the stablecoin USDT may have dropped to its lowest point since 2022, showing that funds are accelerating their flow into Bitcoin and other cryptocurrencies. Both technical indicators and market sentiment suggest that altcoins may experience a comprehensive rebound by May 2025.
The chart representing the total market capitalization of non-Bitcoin cryptocurrencies has broken through the downward trend line that has been in place since January 2025, forming a bullish breakout and a high-low pattern on the daily chart. If it can further break through the $1.25 trillion resistance level, it will confirm a sustained upward trend for altcoins, indicating that funds are shifting from Bitcoin to altcoins.
Meanwhile, Bitcoin's dominance has dropped 4% in six days, marking the largest decline since November 2024, which typically indicates that funds are flowing out of Bitcoin and into altcoins, driving their prices up. Bitcoin's dominance has shown a strong bearish divergence, accompanied by a decrease in trading volume, signaling that the bear market for altcoins has ended.
Recently, the cryptocurrency market has undergone a significant shift, with Bitcoin's dominance declining and altcoins and meme coins rising strongly. Various signs indicate that a prosperous period for altcoins may have arrived.
The dominance of the stablecoin USDT may have dropped to its lowest point since 2022, showing that funds are accelerating their flow into Bitcoin and other cryptocurrencies. Both technical indicators and market sentiment suggest that altcoins may experience a comprehensive rebound by May 2025.
The chart representing the total market capitalization of non-Bitcoin cryptocurrencies has broken through the downward trend line that has been in place since January 2025, forming a bullish breakout and a high-low pattern on the daily chart. If it can further break through the $1.25 trillion resistance level, it will confirm a sustained upward trend for altcoins, indicating that funds are shifting from Bitcoin to altcoins.
Meanwhile, Bitcoin's dominance has dropped 4% in six days, marking the largest decline since November 2024, which typically indicates that funds are flowing out of Bitcoin and into altcoins, driving their prices up. Bitcoin's dominance has shown a strong bearish divergence, accompanied by a decrease in trading volume, signaling that the bear market for altcoins has ended.
‼️Up to this point, the big cake I predicted at 76,000 has arrived, but I have no plans to buy in. Patience is key, hold onto your chips and don't let go easily $BTC
I strongly agree with the blogger's theory of a sharp decline. One ear has not yet reached its goal, and currently, he will not consider the US stock market.
物业经理李太太
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Bearish
Warning‼️ The big drop has started. The downward trend has just begun. I have sold all my holdings.
Looking forward to the blogger's prediction, it hasn't dropped to the target yet, waiting for a crash opportunity.
物业经理李太太
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Bearish
Public Warning‼️ A crash is coming, the property manager who once accurately predicted a major crash is now in this holding situation! Public
1. First, a side note is that Buffett is really a god-like figure. When he reduced his Apple stock by half, he held a massive amount of cash, yet did not earn the admiration that he does now. Looking back, Buffett and his top-notch intelligent team have incredible foresight that is worth a lifetime of learning. His level of patience is also far beyond what other contract gamblers can learn. 2. This round of tariffs has shocked global investors, with some individuals seeing a direct 30% shrink in US stocks. Many have sold relatively strong Bitcoin to compensate for losses in US stocks. I believe Bitcoin has not yet reached its bottom. Bitcoin will drop further. 3. Recently, Ethereum has been oscillating between 1750 and 1830. I bought two Ethereums recently because I am not optimistic; instead, it seems like a bait, buying in to provoke a more drastic drop, which is probably a kind of metaphysics. 4. What is worrying is that Bitcoin is at 83,000 while Ethereum is surprisingly at 1700. Imagine if Bitcoin really drops to 72,000, Ethereum at 1500$BTC would not hold up, and there is even potential to hit 1400. So right now, do not buy a lot of Ethereum; it is still in a leftward downtrend. 5. There are many people in the square who have made huge losses by buying into altcoins, and I do not understand why these people are buying these junk altcoins. Less than 2% of these junk altcoins can truly exit unscathed. I advise those who are thinking of buying altcoin contracts to wake up. 6. Within the next three days, Dalian is expected to reach 76,000, because this time external factors cannot be predicted as accurately as last time.
We should be patient like Buffett and wait for the right opportunity
$DOGS Trend Analysis A month ago I mentioned that almost all altcoins were bottoming out, just hold on and wait for the rise. At that time, I said to hold for 1-2 months, probably until mid to late April. If you want to buy #Dogs to chase the rise, it’s impossible; wait for a pullback to enter. 1592-1392 is a good entry point, and you can see around 3000 above. #ETF关注 #币安Alpha上新 #币安投票下币
$DOGS You are a fraudster. The stock price has been falling since it went online. It has fallen by more than ten times. You don’t even know how to pull it up. Your boss is out of prison. Why don’t you pull it up by one or two times? ! ? Poor institution
There is no turning back in life, and there is no regret medicine in the cryptocurrency circle. The K-line has no red or green color, it is all due to human greed and fear!