Why "V" Shape Happened Last week in #Bitcoin ?

Why "V" Shape Happened Last week in #Bitcoin ?

High Risk-to-Reward Reversal Trades

- Whales in Action: Big traders can manipulate the market to fill long positions. By driving prices down, they trigger stops/liquidations, then enter positions at favorable liquidity levels. Once the liquidity is absorbed, prices reverse upwards.
- Liquidation Levels: Massive pressure on one side of the order book can lead to price reversals after liquidation levels are hit.
- All Liquidation Levels Hit: If all liquidation levels in one direction are exhausted, there's minimal liquidity left, causing a natural price reversal.

Opportunities for Traders:
1⃣ These reversals can mark local tops/bottoms, offering high risk-to-reward trades.
2⃣ Use tight stop losses and further take profits for maximum reward.
3⃣ Increase your chances by finding confluence with other indicators or support/resistance levels.

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