Over 70% of retail traders buy the exact top of relief rallies because they mistake a simple liquidity grab for a structural market reversal. It is incredibly frustrating to watch $BTC pump, finally jump in because you fear missing the bottom, and then get caught in a dump immediately after. This usually happens because you are buying straight into a monthly Fair Value Gap.
Think of a monthly Fair Value Gap, or mFVG, as an empty space left on the chart when price drops too quickly. The market naturally wants to go back and fill that inefficiency. But in a macro downtrend, these gaps act like giant traps. We just printed another one of these gaps above us, and history shows what happens next.
During the last cycle, every time $ETH rallied to fill a monthly gap, late buyers piled in thinking the bear market was over. Instead, those levels acted as heavy resistance, resulting in average drops of 20% to 30% shortly after the gap was filled. It is a classic distribution tactic where big players sell their bags to retail buyers who are chasing the green candles.
Are you guys hedging your positions here, or waiting for a clean breakout before buying?
#CryptoTrading #TechnicalAnalysis #MarketUpdate
Think of a monthly Fair Value Gap, or mFVG, as an empty space left on the chart when price drops too quickly. The market naturally wants to go back and fill that inefficiency. But in a macro downtrend, these gaps act like giant traps. We just printed another one of these gaps above us, and history shows what happens next.
During the last cycle, every time $ETH rallied to fill a monthly gap, late buyers piled in thinking the bear market was over. Instead, those levels acted as heavy resistance, resulting in average drops of 20% to 30% shortly after the gap was filled. It is a classic distribution tactic where big players sell their bags to retail buyers who are chasing the green candles.
Are you guys hedging your positions here, or waiting for a clean breakout before buying?
#CryptoTrading #TechnicalAnalysis #MarketUpdate