Are You Trading Real Liquidity… or Just Absorption?
Most traders believe that when price breaks a level, liquidity has been taken.
So they enter the breakout expecting price to continue.
But a few minutes later…
Price reverses.
Stops get hit.
And the breakout fails.
This happens very often when trading Bitcoin.
The reason?
Not every breakout is a liquidity sweep.
Sometimes the market is doing something else entirely.
Instead of taking liquidity and moving away, large players may actually be absorbing orders at that level.
To the retail trader it looks like momentum.
But behind the scenes, big players could be quietly building positions while the crowd chases the breakout.
📊
Look closely at the chart.
Price broke the level…at 76,680 BTC/USDT
But did it really take liquidity?
Or was it absorption by large players?
Most traders cannot tell the difference — and that’s why many breakout trades fail.
I’ll break down how to identify the difference between liquidity sweeps and absorption in my next post.
👇 What do you think this move was?
A) Liquidity sweep
B) Absorption
Well there is solution for this, to st
op taking absorption as liquidity sweep. Drop you thoughton the comments below and watch out for the solution dropping in a few. 📉 -❎️, 📈 -✅️
$BTC $ETH #articlewriting #articlemarket