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Liquidity

I think you need to avoid buying Bitcoin right now. Here's why?The current price action was discussed in earlier articles. Those who follow my analysis and ideas know it. They know that Bitcoin can show an increase upto $32k in order to trap buyers. Bitcoin needs some sort of fuel, and by fuel I mean liquidity, to move up with heavy buying pressure. Currently the effort of buyers cannot be seen in the 'break out' candles that are printing at this point of time. So there's an anomaly which means something is wrong. Once retail investors will start buying Bitcoin at this level, the Bitcoin price will rise up a bit, show those investors a cookie, and boom. It'll hunt all there stop losses before actually moving up. So my point of interest where I believe BitCoin will bounce back from after a retracement from HKEX:30 -$32k levels would be from $24k - $27k. I'll be executing my buy side position once Bitcoin enters this price zone. Even if shows a further dump from the said price zone, I know that sharks and whales will buy Bitcoin heavily and would not let the price go down below $22k. So wait some time and do not panic buy right now. That's what I'll do. Crypto markets are volatile and trade at your own risk
by YuaishQureshi
📊Liquidity GrabSmall and big players tend to acquire larger positions in the market than they can afford, in an attempt to benefit from the leverage. This is where the concept of liquidity grab comes into play. Large trades and institutional investors need to locate liquidity areas in the market to complete their trades. Stops and stop-loss orders are critical for survival in a leveraged market. Stop hunting is a common practice in Forex trading, where traders are forced to leave their positions by triggering their stop-loss orders. This can create unique opportunities for some investors, which is called a liquidity grab. Stop hunting is a trading action where the price and volume action threatens to trigger stops on either side of support and resistance. When a large number of stops are triggered, the price experiences higher volatility on more orders hitting the market. Such volatility in price generates opportunities for participants to enter a trade in a favourable environment or protect their position. The fact that too many stop losses triggered at once result in sharp moves in the price action is the reason behind the practice of liquidity grab. 📍 What is liquidity sweep? In trading, a liquidity sweep is the process of filling an order by taking advantage of all available liquidity at multiple price levels. Traders use this method to ensure their orders are filled at the best possible price by breaking up their order into smaller sub-orders and spreading them across multiple price levels. Institutional traders and high-frequency trading firms commonly use liquidity sweeps for efficient and quick execution of large trade volumes. 📍 Liquidity Zones Big players in trading aim for the best prices but face challenges finding sufficient counter-forces to fill their large orders. Entering the market at low liquidity areas creates more volatile markets, negatively impacting the average price. Conversely, entering at high liquidity areas results in less volatile markets, ensuring a better average price for the position. These liquidity zones are where stop-loss orders are placed, and the concept of "liquidity grab" comes from the need for big players to enter the market in these zones to take large positions. Traders use swing lows and swing highs to create these liquidity zones and place stops as reference points, resulting in either a reversal to the mean or a breakout of the level. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
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by QuantVue
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