Author: AlΞx Wacy
Compiled by: TechFlow
What happened in the market?
It looks like a big player is setting a trap to encourage people to become exit liquidity.
This drop was bound to happen, so what should we expect next?
In these red days, I want to encourage you.
There was a massive flash crash tonight…
Pushing many Altcoin to new lows.
Overnight liquidations exceeded $1 billion, of which more than 90% were long positions.
Many people believe this happened against the backdrop of a decline in the S&P 500 and various geopolitical factors that I don't want to discuss.
Everyone is aware of the global situation and understands the current environment.
However, I would like to share my thoughts on the other side of the market.
The market is like one big game where major players can manipulate prices with minimal effort.
News around the world often becomes a tool for this manipulation.
Yes, you read that correctly: in most cases, journalism is a tool, not an end.
See tweet for details.
Recently, a surge in negative news has created panic in the market, and manipulators have taken advantage of this.
However, I believe the situation is more complex than simply targeting the "paper hands" that were scared off during this decline.
See tweet for details.
Opinions about the upcoming cottage season are beginning to circulate widely.
A few months ago, when $BTC dropped to $58,000, I also believed we were approaching an alt season.
But I was wrong, which meant that the manipulator successfully deceived me.
GCR : “If you have been on the sidelines, I believe this is a good time to buy high-conviction tokens in batches.
If you have already invested the full amount, just hold on, maintain your spot position, and don't sell it easily.
Some say liquidations are a transfer of wealth between leveraged traders and wealthy spot buyers.”
I was enjoying a period of quiet time on social media, but didn’t want to see my brothers get shaken out while the future was still bright.
The increasing number of analysts entering the market forces manipulators to consider the majority view and develop strategies to deceive them.
After much brainstorming, I came up with the real reason for this intense flash crash.
With alt-season sentiment coming from all sides, people are holding on to their assets and are ready to buy at every new low.
However, the market cannot grow with too many passengers.
Unfortunately, most people will end up losing a lot of money.
When the manipulators realize that people are “refusing to sell,” they orchestrate a major flash crash.
Looking at the chart for $ETH, this drop looks quite worrying.
The drop has sparked fear and many have already started selling their holdings.
However, given the large number of experienced players, many are also likely to buy on this dip.
Indeed, for those who believe in cottage season, this seems like an attractive entry point.
But here’s where it gets interesting.
Many people have seen losses of 70-80% on their holdings, while many have run out of stablecoins.
For these people, further growth will be hoped for by closing positions in order to buy low in case of another strong decline.
Therefore, the market will return to its average level this spring after rising by 40-50%.
But since most people want to restore liquidity, the market will be empty and it could be very bad.
in short:
The market will rise, people will fear another fall, start selling at breakeven, and increase their proportion of stablecoins.
As I said before, empty markets usually drive people to buy in very strongly and quickly at higher prices, thus inducing more FOMO.
Many people fall into the trap of:
In the final growth stage, people are reluctant to sell.
See tweet for details.
When the time to sell comes, many still believe in endless growth.
But those who stick to their strategy and avoid emotional decision making will sell and diversify.
See tweet for details.
So, let’s wrap this up!
The current flash crash is another example of a big player manipulating the market to throw away most of the survivors.
After the market is destroyed, new all-time highs (ATH) will be conquered.
Most people who are at good entry points will scare themselves out of the market and buy at a higher price. That is, they will become exit liquidity.
That's what I wanted to say.
The current market formation is very similar to past bull markets, and today's drop looks like another trap set by a big player.
For now, I'll stick to the plan shown in the screenshots.
Volatility is likely to continue, so we need to remain patient.
