A liquidity sweep happens when price briefly breaks a key level just to trigger stop losses before reversing back in the opposite direction.
It’s not random. It’s how markets move.
📊 Example (BTC Range 62K–70K)
BTC holds 62K support for days. Everyone sees it. So what happens?
➡️Traders:
• Place stops at 61.9K
• Open shorts on breakdown
• Overleverage the “confirmed break”
Price dips to 61.7K… Liquidations trigger. Stops get wiped.
Then suddenly strong bounce back above 62K. The breakdown wasn’t the move. The sweep was the move.
Why It Happens
Markets move toward liquidity.
➡️Where is liquidity?
• Below obvious support
• Above obvious resistance
• At equal highs/lows
Price needs fuel (orders) to move. Stop-losses = fuel.
⚠️ Why Traders Get Trapped
➡️Most traders:
• Enter on the break
• Place tight stops
• React emotionally
➡️But smart money often:
• Waits for the sweep
• Enters after confirmation
• Trades the reclaim
🔑 How To Spot a Potential Sweep
➡️Look for:
• Equal lows or highs
• Obvious support/resistance
• Sudden wick with high volume
• Fast reclaim back inside range
If price breaks a level and immediately returns that’s a red flag.
🧠 The Real Mindset Shift
Don’t ask: “Is this breakout real?”
Ask: “Who just got trapped?”
That question changes everything.
💬 Final Question
Do you trade the breakout…or wait for the sweep?
#Bitcoin #LiquiditySweep #CryptoEducation #MarketStructure #CryptoTrading
