📉 Market Dynamics During the Drop:
In the recent market downturn, a wave of liquidations swept through, with many coins showing distinct wicks in their price action.
🔍 Key Insight: Upon closer examination, it becomes clear that these wicks were not random. Instead, they were tied to liquidity pockets near critical zones.
- 📅 Timeframe Analysis:
- Many of these liquidity zones were on monthly timeframes,
- Others appeared on daily or even 20-hour timeframes.
These movements worked to restore market balance after the disruptions caused by previous upward trends.
⚖️ The Liquidity Rule:
This behavior reinforces the idea that the market is in constant pursuit of liquidity—a rule that spares no asset. Every coin or project, by its nature, tends to gravitate toward this dynamic.
🌟 Unvisited Zones:
While some zones have already been tapped, others—like the October impulse zones—remain untouched. It is highly likely that the market will return to these levels eventually.
💎 Ethereum as a Case Study:
Ethereum stands out as one of the clearest examples of this phenomenon, showcasing how the market seeks liquidity at various key levels.
📈 Strategic Edge:
Simply understanding this principle gives you a significant edge over 99% of traders, as it prepares you for the inevitable corrections that will occur. With this knowledge, you can better anticipate market movements and position yourself for success. 💡