BTCUSDT----->>ONLYBINANCE LONGHere’s a summary of how Bitcoin (BTC) typically behaves after a significant drop, focusing on liquidity movement:
Initial Drop and Liquidity Grab in Lower Zones:
After a substantial price drop, many investors panic and sell their positions. This creates a high concentration of buy orders in lower price zones, where buyers anticipate a potential rebound.
Large market participants, often referred to as "strong hands," take advantage of these panic sales to accumulate BTC at lower prices, effectively "grabbing" the available liquidity in these zones.
Accumulation and Consolidation:
Once the price stabilizes at these lower levels, a consolidation phase occurs, where the price fluctuates within a narrow range. During this period, large market players continue accumulating BTC in preparation for a potential upward move.
This accumulation depletes the available liquidity in the lower zones, creating a foundation for a possible rally.
Upward Move and Liquidity Grab in Higher Zones:
Following the accumulation phase, large players may push the price higher, targeting areas where there’s a high concentration of sell orders (liquidity in higher zones).
This upward movement attracts new buyers who see the trend reversal as an opportunity to enter the market. As the price rises, sell orders at higher levels get triggered, allowing large players to realize profits.
Repetitive Cycle:
This pattern can repeat, with the market alternating between grabbing liquidity in lower and higher zones, depending on the supply and demand dynamics.
This process is part of the market manipulation sometimes observed in cryptocurrencies, where large entities have the ability to move the price to maximize their gains.
