Allow me to explain the internal mechanics of the cryptocurrency market. This perspective does not rely on conspiracy theories; rather, every significant participant already comprehends these dynamics. The market environment is essentially stacked against the average individual, with institutions frequently employing aggressive tactics. In this ecosystem, retail traders often serve as the necessary fuel for larger operations.

First, it is important to understand that companies like MicroStrategy influence investors more than they influence the actual market mechanics. When Michael Saylor tweets, the retail crowd often celebrates, feeling a sense of safety. However, the substantial purchasing activity generally takes place Over-The-Counter, or OTC, and occurs quietly long before any media headlines appear. By the time you feel excitement, the market has already priced in the move. At that stage, the objective shifts from moving the price to controlling market sentiment.

Second, perpetual futures frequently act as a trap. Institutional players establish huge long or short positions simply to manufacture momentum. As retail traders jump in to chase the candles, the market direction flips. Prices reverse, leading to cascading liquidations that wipe out those with weaker hands. This technique is known as bait and bleed, and it continues to be effective right up to this second.

Third, institutions view your stop-loss orders as their liquidity. They are fully aware of standard placement strategies, such as positioning stops below obvious support, near round numbers, or just beneath trendlines. Consequently, they drive prices into these specific zones to trigger liquidations, only to reverse the trend immediately afterward. While many attribute this to bad luck, it is not accidental. It is a deliberate harvest of positions.

To navigate this environment successfully, one must remain disciplined. Trade like a monk.