A sharp pull at the end of the trading day is either treason or theft? The main force often uses these three methods

A sharp pull at the end of the trading day often signals manipulation through spoofing, wash trading, or pump-and-dump schemes, leaving retail traders vulnerable to sudden, artificial price moves.

Jun 13, 2025 at 06:21 am

Understanding the Sharp Pull at the End of the Trading Day

In cryptocurrency trading, a sharp pull at the end of the trading day can be unsettling for retail traders. This phenomenon typically refers to a sudden and significant price movement—either upward or downward—occurring in the final moments of a 24-hour trading period. While some may view it as normal market behavior, others suspect manipulation by large players, often referred to as the main force.

The sharp pull can create confusion among traders who are trying to assess whether the move is genuine or artificial. In markets with high volatility and low regulation like crypto, such moves are not uncommon. Understanding the mechanics behind these movements helps traders distinguish between natural price discovery and potential manipulation.

What Is Meant by “Treason or Theft” in Crypto Context?

When traders say a sharp pull at the end of the trading day feels like treason or theft, they are expressing frustration over what appears to be deliberate manipulation of prices. Treason implies betrayal by insiders or entities that have access to deeper market insights, while theft suggests an unfair extraction of value from unsuspecting traders.

This sentiment is especially strong when positions get liquidated due to last-minute spikes or crashes. For instance, if a trader holds a leveraged long position and the price suddenly drops right before the daily candle closes, their stop-loss might trigger unnecessarily. The phrase reflects the emotional toll such manipulative practices can have on retail participants.

Method #1: Spoofing and Layering

One common tactic used by the main force is spoofing and layering, where large orders are placed and then canceled before execution. These phantom orders create a false impression of supply or demand, tricking other traders into reacting emotionally or mechanically based on misleading data.

• Fake buy walls or sell walls appear on order books.
• Traders place trades expecting support or resistance levels.
• Orders are canceled just before execution, leaving retail traders exposed.

This method exploits the psychological tendency of traders to follow perceived trends. It's particularly effective during low liquidity periods, such as the end of a trading day, when fewer real orders exist to counteract the fake ones.

Method #2: Wash Trading

Wash trading involves a single entity or colluding group buying and selling assets among themselves to inflate volume or manipulate price action. This creates the illusion of market activity and interest where there is none.

• Artificially high trading volumes mislead technical indicators.
• Momentum traders enter positions based on perceived strength.
• Liquidity dries up quickly after the wash trade ends.

This deceptive practice can lead to false breakouts or breakdowns, especially near key timeframes like the close of a daily candle. Retail traders often find themselves caught off guard when the momentum disappears abruptly.

Method #3: Pump and Dump Schemes

Although traditionally associated with altcoins, pump and dump schemes also occur subtly in major cryptocurrencies. A coordinated effort by whales or institutional players pushes the price up rapidly, often near the end of a trading session, before selling off en masse.

• Coordinated social media or private group messages trigger FOMO.
• Retail investors jump in as price surges.
• Main force sells off holdings at inflated prices.

These schemes exploit human psychology and the fast-paced nature of crypto markets. The abrupt reversal at the end of the day can wipe out gains made throughout the session, leaving latecomers holding the bag.

How to Identify Manipulation Tactics at the Close

Recognizing these tactics requires careful observation and analysis of market depth, volume patterns, and candlestick formations. Here are some steps traders can take:

• Monitor order book imbalances – Look for sudden spikes in bids or asks that disappear quickly.
• Check volume anomalies – If volume jumps without corresponding news or catalysts, manipulation might be at play.
• Use multiple timeframes – Zooming in on lower timeframes can reveal spoofed orders or fake breakouts.
• Track whale transactions – On-chain analytics tools can show when large wallets are moving significant amounts of coins.

By staying vigilant and using analytical tools, traders can better protect themselves from being on the wrong side of a manipulated close.

Protecting Yourself from End-of-Day Manipulation

While avoiding manipulation entirely is difficult, there are strategies to mitigate its impact:

• Avoid placing orders blindly near the close – Wait for confirmation or use limit orders instead of market orders.
• Use trailing stops carefully – They can be triggered by temporary spikes created by manipulators.
• Diversify entry points – Don’t rely solely on one timeframe or signal for entering or exiting trades.
• Keep emotions in check – Reacting impulsively to sudden moves can lead to losses.

Adopting a disciplined approach to trading, combined with technical awareness, can significantly reduce exposure to manipulative tactics.

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Frequently Asked Questions

Q: How can I differentiate between a genuine price spike and manipulation at the end of the day?

A genuine spike usually coincides with real-time news, increased on-chain activity, or sustained volume. Manipulated moves often lack fundamentals, exhibit erratic order book behavior, and reverse quickly.

Q: Are certain cryptocurrencies more prone to end-of-day manipulation?

Yes, smaller-cap tokens with lower liquidity are easier targets for manipulation. Even large-cap coins like Bitcoin or Ethereum can experience minor manipulation during low-volume periods.

Q: Can exchanges prevent end-of-day price manipulation?

Exchanges can implement measures like anti-spoofing algorithms and transaction monitoring. However, enforcement varies widely, and many platforms still struggle with detecting sophisticated manipulation tactics.

Q: Should I avoid trading near the end of the trading day altogether?

It’s not necessary to avoid trading entirely, but caution is advised. Consider reducing position sizes, using tighter stops, and verifying signals across multiple sources before acting.