A decade of trading in the crypto circle, I've seen too many people enter the market with grand promises of making it big, only to leave with nothing. Statistics show that 90% of retail investors ultimately end up losing money. But this is not fate; it's because most people haven't learned to read the market.

My early experiences serve as cautionary lessons. During the 2017 bull run, I chased after a small coin that had already surged 300%, buying aggressively, only to be crushed. It was only later that I realized it was a carefully orchestrated trap by the market makers. After paying so much tuition, I’ve summarized some valuable lessons worth sharing.

**Signal 1: Geometric Patterns of Market Makers’ Distributions**

Market makers’ business is simple—buy low, sell high. To achieve this, they create various illusions. The most classic pattern is as follows: a coin surges over 30% in a short period, then consolidates sideways for about three days at the high, followed by a sudden volume spike and a drop of over 15%. Once this sequence appears, it’s highly likely that the market makers are preparing to clear their positions.

Why does this happen? Because market makers need time to let retail investors follow the trend. The sideways consolidation at the high provides a perfect window for FOMO-driven buying. Once enough retail investors chase the high, they start dumping. Those who buy at the top often become the last to exit in this cycle.

**Signal 2: The Trap of Good News**

This is the most easily overlooked trap. When the entire market is optimistic and major influencers are shouting "bottom of the cycle"