The psychology of the market makers to understand why this drop is happening.


The psychology of the market makers to understand why this drop is happening.


Market makers understand that there are two main types of traders in the market right now:

1️⃣ The Long-Term Holders: These traders bought BTC at $69,000 two years ago and have been holding onto their investment ever since.

2️⃣ The Wave Surfers: These are the traders who jump in when they see the market pumping uncontrollably.

The Market Makers’ Strategy

How?

By causing a drop in prices and stirring the pot.

Why?

To force both types of traders to sell their holdings, fearing further losses. When the market makers drive the prices back up, BTC will be more expensive to buy, forcing these traders to re-enter the market at a premium. This cycle traps them for another 2–3 years.

Think of it as a musical chairs game where the market makers know exactly when the music will stop playing.

How to Recognize the Pattern?

1️⃣ First Criterion: The market will not return to the starting point of the pump. For instance, BTC was priced at $67,481 when the pump started on November 5. We should never see BTC drop back to that level.

2️⃣ Second Criterion: Monitor the correlation between BTC and altcoins. If BTC drops more than altcoins, it indicates continued bearish sentiment. As the gap narrows and the percentage loss lessens, we can expect a reversal toward the ultimate goal of $100,000 — $110,000.

As of now, BTC has lost 7.99% of its all-time high value over five days, while most coins have lost between 15–20%. This indicates that the drop will continue, but as the gap closes, we should see a reversal towards higher price targets.

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The psychology of the market makers to understand why this drop is happening. was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.



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