I’ve been watching LIT closely, and this 1-hour chart just delivered a textbook liquidity sweep that completely shifts the short-term narrative. What immediately caught my eye wasn't the heavy bleed from the 3.3286 highs, but the sheer, aggressive rejection at the 3.0031 low.
The bears tried to force a breakdown, but they were aggressively absorbed. Since that flush, the market has printed massive, full-bodied green candles, completely erasing the previous sell-off. Currently trading around 3.2715 (+4.01%), the price has powered through the moving average stack.
The moving averages tell the story of a rapid trend flip. The short-term MAs (MA7 at 3.1885 and EMA7 at 3.2029) have curled sharply upward and crossed bullishly over the longer-term averages. The heavy MA28 (3.1435) and EMA28 (3.1696) are now left behind, acting as a rising structural floor.
The Educational Takeaway: Retail traders often panic and short the breakdown at the bottom. Professionals wait for the exhaustion wick and the subsequent reclaim of the moving averages. That sweep to 3.0031 was a liquidity grab—it hunted the stops of late longs and trapped aggressive shorts. The V-shaped recovery is the confirmation that buyers have taken absolute control.
The Trade Plan:
· Market Bias: Firmly Bullish. The structure has flipped.
· The Play: I am waiting for a shallow pullback to enter. I don't chase the top of a vertical recovery.
· Ideal Entry Zone: The 3.1700 - 3.2000 zone (the moving average cluster).
· Confirmation: A higher low forming in this zone, followed by a strong 1H rejection wick bouncing off the 3.17 support.
· Invalidation/Stop-Loss: A decisive 1H close below 3.1400.
· Targets: T1 at the immediate resistance of 3.3286, T2 at the psychological level of 3.4000.
The momentum has clearly shifted. The old resistance is now new support, giving us a solid framework for a high-probability entry.
Are you waiting for the pullback into the 3.17 support to enter, or are you looking for a confirmed breakout above 3.33?
$LIT #CPITestsDecemberRateOutlook #BitcoinFiveWeeklyLosses
The bears tried to force a breakdown, but they were aggressively absorbed. Since that flush, the market has printed massive, full-bodied green candles, completely erasing the previous sell-off. Currently trading around 3.2715 (+4.01%), the price has powered through the moving average stack.
The moving averages tell the story of a rapid trend flip. The short-term MAs (MA7 at 3.1885 and EMA7 at 3.2029) have curled sharply upward and crossed bullishly over the longer-term averages. The heavy MA28 (3.1435) and EMA28 (3.1696) are now left behind, acting as a rising structural floor.
The Educational Takeaway: Retail traders often panic and short the breakdown at the bottom. Professionals wait for the exhaustion wick and the subsequent reclaim of the moving averages. That sweep to 3.0031 was a liquidity grab—it hunted the stops of late longs and trapped aggressive shorts. The V-shaped recovery is the confirmation that buyers have taken absolute control.
The Trade Plan:
· Market Bias: Firmly Bullish. The structure has flipped.
· The Play: I am waiting for a shallow pullback to enter. I don't chase the top of a vertical recovery.
· Ideal Entry Zone: The 3.1700 - 3.2000 zone (the moving average cluster).
· Confirmation: A higher low forming in this zone, followed by a strong 1H rejection wick bouncing off the 3.17 support.
· Invalidation/Stop-Loss: A decisive 1H close below 3.1400.
· Targets: T1 at the immediate resistance of 3.3286, T2 at the psychological level of 3.4000.
The momentum has clearly shifted. The old resistance is now new support, giving us a solid framework for a high-probability entry.
Are you waiting for the pullback into the 3.17 support to enter, or are you looking for a confirmed breakout above 3.33?
$LIT #CPITestsDecemberRateOutlook #BitcoinFiveWeeklyLosses