Let me tell you a manipulation theory of altcoin market makers - #K-line chart manipulation and#liquiditytrap (contract mechanism loophole) Explanation: The contract mechanism is just an order book matching mechanism. The pending orders will push up the mark price. Market makers can create false liquidity by concentrating on high-frequency quotations and order withdrawals, and manipulate market prices in the short term! ! This is a famous supply manipulation control! Placing a large number of buy and sell orders to create a false supply and demand illusion! Inducing contract traders to follow suit!
I give the argument (compared with large software API data): Market makers have the phenomenon of influencing prices in the short term through order book management. Take the trend of ETH in early February 2024 as an example: 1. At the public opinion level, market sentiment was boosted by celebrity comments; 2. At the technical level, after the price broke through the key level of $3,262, the order book showed a sharp drop in the thickness of the upper sell orders (data source: CryptoQuant exchange flow indicator), but the on-chain whale address showed a net outflow during the same period; 3. When the price was pushed up to $3,450, the perpetual contract funding rate reached a weekly peak of +0.12%, and a large number of retail long orders gathered in the $3,300-3,400 range (CoinGlass liquidation map shows that there is a $240 million long order liquidation threshold in this area); 4. In the plunge on February 3, more than 150,000 ETH were transferred from the market maker label address to the exchange (Nansen data), which formed a strong correlation with the price falling below $3,300. This phenomenon is consistent with - liquidity induced-long and short double kill The above confirms my prediction and escaped this round of inducement to long sniping 😎!
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