The market has been dragging altcoins to deeper lows, and we’re even witnessing clear bearish breakout patterns. However, it’s important to note that these moves must not break further downward—what we’re seeing is likely a liquidity hunt. This is a classic tactic where the market aims to shake traders out of their positions, forcing panic selling, only for larger players to step in and buy at discounted prices.
If the price does push lower, it’s in these zones that institutional buyers absorb everything, clearing out the weak hands. These areas often represent a high-demand region where significant buying pressure builds up, driving prices sharply upward once the sell-side liquidity is consumed.
Interestingly, someone commented on my earlier post, highlighting tomorrow’s interest rate decision as a potential catalyst. Such macroeconomic events are often used to fuel volatility, acting as a trigger for sharp moves. If the decision aligns with market expectations or surprises positively, it could inject the momentum needed for a reversal, igniting a rapid recovery across the market.
In simple terms, this pullback is designed to test patience and conviction. When liquidity is exhausted and the dust settles, those positioned strategically may see prices surge aggressively in response to renewed demand. Don’t get shaken out too early—keep a close watch on these levels and broader market drivers.