Among most indexes across the globe I have spotted a variation of both wyckoff distribution schemes on the total cryptocap. As I said in my previous analysis; the markets have run hot and in no way market makers, early investors and whales would consider a scenario of WAGMI.
Market makers in crypto have learned a tough lesson during 2018 when bear markets could run hot - even for them. Another 3 years of bots, algorithms and machine learning have made them the perfect liquidity (or better said: liquidation) hunters amongst any market in the globe. This is not only because of their "brilliance and analytics" but more so; because they have one of the few retail dominated markets. Every dip should either be bought or diamond handed and every pump even more so. In fact, it is the mentality of the counterpart that made market makers record profits during 2020 and 2021. The expectations nothing less than a record breaking year for more profit.
The machine learning machines that act as intelligent liquidity miners at the fraction of the cost of a Bitcoin mining farm printed new results; the slow bleed. The slow bleed has ever showed to be the best returning strategy to contain the crypto enthousiast. Downtrends come with a few phases:
Phase 1: flash corrections retracting "the floor" that upholds the price of a coin
Phase 2: a quick absorption of liquidity through a cascade of liquidations and stops
Phase 3: a fast vectorized return to a higher floor downplaying the actual floor by a huge wick
Phase 5: the local uptrend creating new hope; "the bottom is in"
Phase 6: the vectorized liquidity chop absorbing the liquidity up and down in the new zone
Phase 7: the short squeeze; "WAGMI"
Rinse and repeat.
The downfall of the bull market itself are in fact the bulls themselves with overleveraged longs or calls, overplaying their hand without a hedge towards the opposite direction, the direction of the market maker.
IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.