Here's what happened the last time traders tried to buy the breakout without checking the overhead liquidity gaps.
It is incredibly frustrating to watch your long position get liquidated right at the local top, especially when you thought the trend was finally reversing. Most of us have fallen into the trap of FOMO buying a relief rally, only to realize we just provided exit liquidity for larger players.
We just printed another mitigated Fair Value Gap overhead, a structural pattern that has consistently capped upside moves during this bearish phase. If we look back at how $BTC behaved during the mid-2022 selloff, the setup looks almost identical. Price drifted upward to tap the gap, lured in breakout buyers, and then promptly rejected to print new local lows.
The same thing happened with $ETH during the distribution phase last quarter. These overhead gaps act like temporary magnets for price, but they rarely signal a true trend reversal. Instead, they serve as prime distribution zones where institutional sellers fill their limit orders against eager retail buyers.
Do you think we sweep this gap and reject again, or is this time actually different?
#TechnicalAnalysis #CryptoTrading #MarketStructure
It is incredibly frustrating to watch your long position get liquidated right at the local top, especially when you thought the trend was finally reversing. Most of us have fallen into the trap of FOMO buying a relief rally, only to realize we just provided exit liquidity for larger players.
We just printed another mitigated Fair Value Gap overhead, a structural pattern that has consistently capped upside moves during this bearish phase. If we look back at how $BTC behaved during the mid-2022 selloff, the setup looks almost identical. Price drifted upward to tap the gap, lured in breakout buyers, and then promptly rejected to print new local lows.
The same thing happened with $ETH during the distribution phase last quarter. These overhead gaps act like temporary magnets for price, but they rarely signal a true trend reversal. Instead, they serve as prime distribution zones where institutional sellers fill their limit orders against eager retail buyers.
Do you think we sweep this gap and reject again, or is this time actually different?
#TechnicalAnalysis #CryptoTrading #MarketStructure