The 4 Major Stages of Market Maker Involvement in Digital Money: A Practical Breakdown from Accumulation to Dump

1. Accumulation Phase: The market maker's "quiet coin hoarding" lurking period

The core action of market makers during this stage is to accumulate chips at a low level, where the market makers are the main buyers and retail investors are mostly sellers.
From the characteristics of the market, it can be judged through the relationship between volume and price: when the price of Digital Money is in a low range, there will be a staircase increase in volume (trading volume gradually increases), accumulation (continuous large transactions), and simultaneous rise in volume and price (price rises in sync with trading volume). These characteristics correspond directly to the chip distribution chart, reflecting that the market maker is steadily accumulating.

2. Ascending Phase: The market maker's profit period of "pushing up the coin price"

After the market maker completes the Accumulation, the Digital Money price will deviate from its cost price zone, and the market maker will start to realize paper profits.
At this stage, the market maker will use a small amount of funds to wash the盘 (oscillate and sort, cleaning up retail float), while most of the chips remain inactive; corresponding to the chip distribution map, a large amount of chips still occupies the bottom area, which is the core position of the market maker, aiming to wait for subsequent high-level cashing out and promote the coin price further upward.

3. Peak Stage: Signal Period of Market Maker Preparing to Exit

When the price of digital money is at a high, if the chips in the bottom range suddenly disappear in large quantities, it is a clear sign of a dump by the market maker.
The key feature of this stage is: low-position chips will continuously move to high positions, forming a dense accumulation at high positions, while the market turnover rate rises sharply (a large number of chips are exchanged at high positions), indicating that the market maker is accelerating the transfer of chips, and the coin price is about to peak.

4. Dumping Stage: The Market Maker's "Cash Out" Final Phase

After the market maker completes profit-taking at a high level in Digital Money, the market chips will be fully concentrated in the high range, and there will be no market maker held chips at the bottom.
At this time, the market maker's dumping action has been completed, and the digital money lacks upward momentum afterwards. Investors should not continue to hold and need to take immediate stop-loss or take-profit actions to avoid being trapped.
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