Analysis → Build a Position → Test the Market → Consolidation → Initial Rise → Whipsaw → Pump → Dump → Rebound → Dumping → Cycle...

Preparation Stage
Before the market makers start to intervene in a certain cryptocurrency, they will comprehensively collect various information about the project, including precise statistics on the total amount of chips, unlocking situations, cost of investors at different levels, chip dispersion, and community enthusiasm assessment, etc.
After gathering the information, they will set the pump target based on the scale of funds they can mobilize. (For example, ignore altcoins and self-issued tokens.)
Build a Position
Before building a position, the market maker will conduct various investigations and studies covering aspects such as market sentiment, the overall trend of BTC in the crypto market, macroeconomic factors, and policy risks.
Usually, the market makers choose to enter the market when it is generally pessimistic, market sentiment is low, retail investors' confidence is shaken, and there is a pessimistic outlook on the currency. Building a Position is like the saying goes, when retail investors are fearful, it is when the market makers are greedy.
Depending on the strength of the market maker, the proportion of their positions varies. Short-term market makers can operate with control over 10% - 30% of the chips, while long-term market makers often need to hold more than 40% of the chips. Of course, this largely depends on the size of the market maker's strength. Generally, market makers do not build a position at high levels.
The main methods of the market maker's Build a Position are as follows:
Negative news accumulation: Taking advantage of negative news in the cryptocurrency circle, such as project technical failures and rumors of stricter regulations, to suppress coin prices, triggering panic selling, and thereby accumulating chips at low positions.
Trap for Inducing Shorts: Creating a false impression of a price decline through technical means, inducing retail investors to sell, while the big players absorb at low levels, completing the build a position layout.
Large-scale buyers: Concentrated funds buy large amounts of the target currency in a short period, pushing up trading volume, attracting follow-up buying, and secretly collecting chips.
Rebound Build a Position: During the rebound stage after the price of the currency drops, gradually buy in, taking advantage of the psychology of some investors to break even or take profits, and expand the position.
New project ambush: When the target cryptocurrency is associated with significant technological upgrades, the implementation of new application scenarios, or expectations of strategic partnerships, prepare to build a position in advance.
Trial Phase
At this stage, the market makers slightly pump or suppress the price of the currency, observing market buying and selling behavior, transaction volume, order placement situation, and emotional fluctuations, to understand the degree of chip locking, the strength of follow-up orders, resistance and support levels, and other key information, providing a basis for fine-tuning subsequent trading strategies.
However, trial trading is not a mandatory option; some traders, with their keen market sense and rich experience, may directly initiate a pump or take other actions, and the timing of the trial trading is flexible, allowing for timely execution throughout the entire process.
Consolidation Phase
Consolidation is aimed at optimizing the chip structure and accumulating upward energy. It can be subdivided into low, mid, and high-level consolidations based on the coin price position. The price trend of the coin often alternates between rising, falling, and consolidating, with consolidation occupying a significant amount of time. During this stage, the price fluctuations are mild and the direction is unclear, testing the patience of investors. The market makers take this opportunity to solidify their holding costs, wash away floating chips, and wait for the chance to pump. This stage often tests the patience of retail investors the most, as the price movement can be quite frustrating.
Initial Stage
After completing the preliminary groundwork, the market maker initiates an initial upward trend, moderately pumping the coin price to attract market attention, stimulate enthusiasm for external funds to enter, and reduce subsequent upward resistance. However, to avoid exposing intentions too early and attracting trend-following and regulatory scrutiny, the initial rise is limited, and then the coin price will slightly retreat to clean up profit-taking and unstable chips, laying a solid foundation for subsequent steady upward movement.
Whipsaw
After accumulating a certain amount of chips, the dog庄 will adopt a strategy to suppress the price of the coin in order to drive away follower positions and force early holders to sell. This can both absorb more chips at a low price, reduce the cost of holding positions, and eliminate weak-willed retail investors, thereby reducing the selling pressure during subsequent rebounds and creating conditions for high-price dumping.
pump phase
After a series of operations such as accumulation, trial trading, and whipsaw, both bulls and bears have reached a high degree of consensus to a certain extent. Once the market situation is stabilized and the dealer controls a large amount of chips, the rise in coin price becomes a natural outcome. During the pump phase, the coin price rises rapidly as the dealer skillfully utilizes factors such as market enthusiasm, technical indicators, and positive news to attract more investors to follow suit and buy in, driving the coin price to new highs and achieving substantial profits.
dump stage
As the saying goes, "Being able to buy makes you a disciple, while being able to sell makes you a master," dumping is the key objective for the market maker. Successfully distributing chips is the only way to turn paper profits into actual gains. Distribution is the most critical phase in the market making process because only by successfully distributing chips can any market maker convert their paper profits into real earnings.
To achieve this, the market makers will employ various tactics, such as creating a false appearance of market prosperity, guiding sentiment through media narratives, and using related accounts for fake trading to create a lively atmosphere, enticing unsuspecting investors to take over and ensuring a smooth dump.
Rebound Phase
After the price of the currency drops, a brief rebound often occurs, which is the rebound phase. When the market makers dump and the price of the currency dips near the profit line, due to the "bottom-fishing" psychology of some retail investors and their need to offload remaining chips, the price will be slightly pumped, creating a rebound market.
However, this is mostly fleeting; after the rebound ends, the price of the coin is likely to continue to fall, and may even reach new lows. If investors rashly "buy the dip", they can easily fall into a situation of being stuck. The rebound phase is a secondary stage in the process of building a position, and some assets do not have a rebound process.
dumping phase
Passive dumping: When encountering sudden bad news, such as major technical vulnerabilities, disputes among project parties, or sudden changes in regulatory policies, it triggers a panic selling wave in the market. The market makers may be forced to dump in order to minimize losses. This behavior may lead to the market makers abandoning their positions or, after dumping, seeking opportunities to accumulate at lower prices to regain control.
Selling after a dump: After successfully dumping at a high position and locking in profits, the remaining small amount of chips no longer matters. At this time, dumping can both suppress the coin price and facilitate the subsequent low-price accumulation, without needing to consider market image and costs.
Dumping for a new market: After a round of speculation ends, the operators will deliberately dump to accumulate low-cost positions for the next round, creating a bearish atmosphere to induce investors to sell, while also testing the market bottom and investor psychology, laying the groundwork for the new market to start. Initiate a new harvest cycle.
Regardless of the type of trader, it always involves the three stages of Building a Position, pumping, and dumping. This is the most basic "trilogy" for traders.
By standing more from the perspective of the main force and thinking about their intentions in trading, one can follow the rhythm and enjoy the profits!
The crypto world is always repeating yesterday's story.
The speculation sector is changing, prices are changing, and the people buying and selling are also changing, but human nature has not changed.
Let's encourage each other!