- Bitcoin grabbed liquidity above the trendline before rejecting from a key supply zone
- A rising trendline is now building more stop-loss liquidity underneath current price
- BTC may need to dip further to collect that liquidity before a true bounce can begin
In the last article, we talked about how Bitcoin was quietly building up liquidity above.
That slow and steady trendline climbing upwards? It wasn’t just price action — it was a trap. A classic setup: clean highs with stop losses stacked above, just waiting to be taken.
And guess what? That’s exactly what happened.
Price surged, slicing through the trendline like butter, triggering stop orders and grabbing that sweet cluster of buy-side liquidity.
Why? Because when big players — institutions, market makers, call them what you like — want to sell, they need a crowd of buyers to offload onto. Otherwise, they’d drive the price down too quickly and lose their average.
So what do they do? They engineer a move up. Pull in breakout traders. Hit the stops of short sellers. And once they have enough buy orders to sell into… they drop the hammer.
Bitcoin reacted right at the supply zone, almost as if someone marked it ahead of time.
But here’s the twist…
Even after that textbook rejection, price still hasn’t cleared the liquidity underneath. Actually, it’s doing the opposite — building more.
Right now, Bitcoin is forming another rising trendline, which means even more stop losses are gathering just below it. It’s like the market is setting the table for another feast.
Yes, we’re seeing a reaction at a demand zone.
But here’s the thing — in my experience, and maybe you’ve seen this too — when price still has uncollected liquidity waiting just below, demand zones start acting a little soft. They bounce, but weakly. They hold… until they don’t.
And this one feels like it might not hold for long.
Understanding Why Price Does What It Does
Let’s break it down. People often think price moves in a straight line based on sentiment or news.
But in reality? It moves based on liquidity. Markets need counterparties.
When someone wants to buy a massive amount, there needs to be someone willing to sell. And when someone wants to offload huge bags of Bitcoin? They need to attract buyers. Fast.
So institutions manufacture patterns. They draw trendlines that retail traders cling to. And then — they break them. Not because they like chaos. But because those breaks are filled with stop orders. And stop orders are liquidity.
That’s why price surged into supply first. And that’s why it could still break lower to clean up the unfinished business beneath this current uptrend.
Final Thoughts
Sometimes it feels like price is reading your mind. You expect the break… and it comes. You think it’ll fake out… and it does. Other times? It does the complete opposite. That’s the game.
That’s why flexibility is key. Risk management over conviction. Being right doesn’t matter if you’re not protected when you’re wrong.
Right now, BTC feels heavy. It’s reacting to demand, sure — but with uncollected liquidity below, the path of least resistance still feels like it points downward.
But hey, this market has humbled all of us more than once.
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