The trend of the next day after the late trading dive: the difference between the main force washing and shipping

A sharp late-night crypto drop may signal either a temporary wash by big players or a sustained sell-off, with next-day price action revealing the true intent.

Jun 13, 2025 at 06:07 pm

Understanding the Next-Day Trend After a Late Trading Dive

When a cryptocurrency experiences a sharp decline in price during late trading hours, traders and investors often look to the following day for clues on market sentiment. The next-day trend can either signal a continuation of the bearish momentum or indicate a potential rebound. This is especially important in crypto markets due to their 24/7 nature, where off-peak trading hours can still result in significant price swings.

One of the key factors that influence this trend is whether the decline was caused by main force washing or main force shipping. These two scenarios have distinct implications for short-term and intraday price action.

Main force washing refers to when large institutional players or whales intentionally push prices down to shake out weaker hands and accumulate assets at lower levels.

Main force shipping, on the other hand, involves these same entities selling off their holdings en masse without plans to re-enter, signaling a more sustained downtrend.

The distinction between the two becomes crucial for positioning strategies in the next trading session.

Identifying Main Force Washing Through Chart Patterns

To determine whether a late-night dive was part of a wash cycle, one must closely examine volume and candlestick formations. A wash typically occurs with high volume but limited downside follow-through, suggesting aggressive buying below certain price levels.

• Volume spikes during the fall followed by immediate absorption suggests accumulation.
• Long lower wicks on candles imply rejection of lower prices and possible support building.
• Immediate reversal attempts after hitting key psychological or technical levels point toward manipulation rather than organic selling.

In such cases, the next day’s movement may show signs of strength, including higher open prices or strong resistance testing early in the session.

Recognizing Signs of Main Force Shipping

Unlike washing, shipping involves a deliberate and sustained sell-off without any attempt to stabilize or reabsorb the dumped coins. This is often seen when large holders are exiting positions permanently, possibly due to regulatory changes, network upgrades, or broader macroeconomic shifts.

• Sustained low volume during and after the drop indicates lack of interest from buyers.
• Short upper and lower wicks suggest no real struggle over price control.
• Continuation patterns like descending triangles or bear flags appear shortly after the drop.

If the next trading session opens below the previous close and shows weak rebound attempts, it reinforces the narrative of shipping rather than temporary consolidation.

How Market Depth Reflects the Nature of the Drop

Market depth analysis provides critical insights into whether a drop was orchestrated or organic. In a wash scenario, large orders will be placed just below the current price to absorb incoming sells, preventing a freefall. This creates a visible "wall" in order books.

Conversely, in a shipping scenario, there will be an overwhelming presence of large sell walls with minimal buy pressure. Orders might be executed through multiple exchanges simultaneously, indicating coordinated dumping.

Traders should check:

• Order book imbalances before and after the drop.
• Exchange inflows/outflows of large wallets using blockchain analytics tools.
• Time-stamped trade data to detect spoofing or wash trading tactics.

These observations help in distinguishing genuine panic selling from calculated moves by major players.

Price Action Confirmation in the Following Session

The most reliable way to differentiate between the two types of drops is to observe how the market reacts in the next trading window. If the asset gaps up and quickly retraces a significant portion of the prior night’s loss, it strongly supports the wash theory.

On the contrary, if the next session sees continued selling pressure, new lows, and failure to reclaim key moving averages, it confirms that the main force was indeed shipping.

• Watch for gap fills within the first few hours of trading.
• Monitor RSI divergence — bullish divergence hints at hidden demand.
• Check for retest failures at previously broken support zones.

These signals allow traders to position accordingly, either by fading the move or riding the emerging trend.

Frequently Asked Questions (FAQ)

Q: How do I differentiate between retail panic selling and main force actions?

Retail panic selling usually lacks coordination and appears sporadic across exchanges. Main force actions tend to be synchronized, involve large volumes, and target specific price points or psychological thresholds.

Q: Can both washing and shipping happen on the same day?

Yes, especially in volatile assets. Sometimes main forces wash in one region while shipping in another, depending on their strategy or external news flow.

Q: Are altcoins more prone to main force manipulation than Bitcoin or Ethereum?

Generally, yes. Lower liquidity altcoins are easier targets for manipulation due to thinner order books and less diversified ownership structures.

Q: What tools can I use to track real-time order book changes?

Platforms like Whalemap, Glassnode, and CryptoQuant offer advanced tools for tracking on-chain activity and exchange flows. Order book visualization tools like Depth.Market also provide live depth charting.