#marketrebound What Liquidity Really Means (Simply Put)
Ever notice how price sometimes moves smoothly… and other times jumps suddenly for no clear reason? That difference usually isn’t news or indicators. It’s liquidity.
Liquidity is just how easily trades can happen without moving price too much. When liquidity is high, orders get filled quietly and price behaves “normally.” When it’s low, even small orders can push price fast - up or down. This is why markets often feel calm around active sessions and chaotic during quiet hours. You’ll see this clearly when Bitcoin moves cleanly at certain levels and violently at others.
Before entering a trade, notice how price is moving, not just where. Thin movement with sudden spikes often means liquidity is weak - patience matters more there.
How do you personally notice when the market feels liquid versus unstable?
