After years of navigating the crypto world, witnessing countless grand market waves, I’ve gradually uncovered a profound truth—the market’s face changes every day, but the underlying logic of its operation has never really changed.

Recently, a certain coin’s performance has been a textbook example of a shakeout, a classic manipulation. Beginners must observe this, or they’ll always be passively getting cut.

**Opening: Emotional Collapse**

The price plummeted from 1.2U to 0.9U, trading volume sharply declined, and the community was filled with despair—"It's over" "Will it go to zero?" Retail investors started cutting losses and exiting, while the true players quietly moved in from the shadows, accumulating bottom positions one after another. This wave is called "squeezing out fear-based chips." The cuts not only reduce the price but also target the most fragile part of human nature.

**Progression: False Hope**

Suddenly, a turn appeared. A black candle smashed the price down to 0.7U, then immediately rebounded to 0.95U, forming a V-shaped reversal. The most familiar script for veteran investors was played out: "Ah, this is the bottom!" The crowd rushed to buy the dip, thinking they’d make a big profit this time. But the market makers were waiting for this moment—they quickly broke support, pushing the price down to 0.65U. The newly entered retail investors instantly became bagholders, their regret thick enough to turn liquid.

**Climax: Panic Massive Harvest**

Then came the most brain-twisting part of the story. Negative news flooded in—"The project team vanished," "Major funds are liquidating and fleeing," "The coin is doomed." When the price dropped to 0.5U, the entire market felt like the end of the world—every comment section was filled with despair. But if you check the on-chain data, you’ll see an astonishing scene: those whale addresses were frantically absorbing chips, like they were bottom-fishing. This was the final deadly blow—they seized all the cheap assets available in the market at the darkest hour, at the lowest prices.

**Reversal: Major Turnaround**

When everyone was lying flat, accepting defeat, the market makers gently pushed the price up, and the coin shot straight to 1U. Those who had sold in regret now scrambled to buy back, while outsiders, fearing they’d miss the next move, rushed in. Meanwhile, the old funds quietly offloaded their holdings at this moment. A perfect round of capital rotation concluded.

**Deep Logic**

So, what is the essence of a shakeout? It’s not about market makers fighting retail investors over who owns more coins. It’s a carefully orchestrated capital redistribution. They push out the low-cost old hands and attract new high-cost funds. Every sharp decline isn’t the story’s end but the start of reassigning chips.

Instead of complaining about market darkness all day, learn to read their rhythm. True masters are never those who are more accurate at predicting ups and downs, but those who can see through the script of this "big show" in advance. Once you truly understand this logic, even in the darkest night, you’ll hold a lamp in your hand.