**In the crypto world, it seems that news can always stir up storms. A piece of news or a rumor can trigger dramatic fluctuations in BTC and other cryptocurrencies. However, as a reverse investor, I am well aware that behind all of this, there are dealers who manipulate the market to serve their own interests by trading and driving market sentiment. This article will delve into the trading behavior of dealers, revealing how they manipulate the market through news to achieve their goals.

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Manipulation Strategy of News

1. Creating panic and excitement:

** - **Panic sentiment：The dealer will choose to spread negative news when the market sentiment is fragile, such as government regulatory tightening, Hacker attacks, etc. These news will cause retail investors to panic dumping, and the BTC price will quickly decline, while the dealer will accumulate a large amount at the low level.

** - **Excitement : On the contrary, when the market sentiment is high, the dealer will release Favourable Information through the media, such as government strategic asset reserves, technological breakthroughs, etc. This will trigger the fear of missing out mentality among retail investors, rushing to buy, pushing the price pump, while the dealer profits from dumping at high levels.

2. Seize the opportunity of news sentiment:

** - ** Layout in advance: Market makers usually lay out their positions in advance, completing a large number of buy or sell operations before the news is released. Once the news is announced, the market fluctuation intensifies, and they take advantage of the reaction of retail investors to complete transactions.

** - **Trend operation：After the release of major news, the market makers will operate with the trend according to the immediate market reaction, such as continuing to push up prices to attract more retail investor to follow up when the price rises rapidly, and then gradually reduce position.

3. The combination of fundamental and technical analysis:

** - Misleading Technical Analysis**: Dealers use Technical Analysis tools, such as Candlestick patterns, Trading Volume and other technical indicators, to create a false impression of bullish or bearish trends, in order to attract technical investors to get on board. For example, dealers may release Favorable Information near an important support level to create the illusion of a pump breakthrough, when in reality, they may be ready to dump at a high level.

## Analysis of the dealer’s trading behavior

**1. Large capital manipulation:

** - **Large Buy/Sell Orders: Dealers have a large amount of capital and can control the short-term market trend through large buy/sell orders. When they buy in large quantities, the price rises quickly, and vice versa.

** - **Whipsaw Operation：By frequent short term trading, market maker can quickly push up or suppress prices, forcing retail investor to sell their chips, thus completing the Whipsaw Operation.

2. Asymmetric Information:

Inside Sources:d EALER usually has inside the market and is able to predict the market movement in advance. This information asymmetry gives them a huge advantage in market operations.

** - Media Manipulation: Dealers often manipulate the media to release favorable news that affects market sentiment. For example, they can influence investors’ decisions by having well-known analysts or industry leaders release market forecasts.

**3. **Psychological tactics:

** - **Using greed and fear : The dealer is well versed in the weaknesses of human nature, and by creating market Fluctuation, it stimulates investors’ greed and fear. Greed causes investors to chase rising prices at high levels, while fear leads to Cut Loss at low levels.

** - ** ** ****: Market makers will induce retail investors to engage in frequent trading through various means, earning transaction fees while making the market more unpredictable.

## Reverse Investor Strategy

As a Reverse investor, to stay sober in the dealer’s operation and profit from it, the following strategies can be adopted:

**1. **Stay Calm：In the face of market Fluctuation, don’t blindly follow the trend. No matter how tempting the news is, analyze its authenticity and underlying purpose calmly.

2. Observing Trading Volume: By observing changes in Trading Volume, we can determine market sentiment and the actions of the dealer. When Trading Volume abnormally expands or contracts, it is often a signal of dealer manipulation.

**3. **Build a Position in Batches：Avoid Heavy Position at one time, Building a Position in Batches can effectively drop risk. When the market Fluctuates significantly, gradually increase the position or reduce position to cope with market uncertainty.

**4. **Set Stop Loss：Set a clear stop loss for each trade to prevent huge losses caused by severe market Fluctuation. The setting of stop loss should be adjusted according to personal risk tolerance and market conditions.

follow Reverse investor, stay calm, see through the dealer’s tricks, and stand invincible in the market.