🚨 What Is a Stop Hunt in Crypto Trading?
A stop hunt is a market move designed to trigger stop-loss orders placed by traders. It usually happens near obvious support or resistance levels, forcing weak positions to exit and creating liquidity for larger players.
Think of it as the market shaking out weak hands before a bigger move.
🔄 How Stop Hunts Work
Price moves toward a key level where many stop-losses are placed
Stops get triggered, causing a sudden spike in volatility
Large traders or institutions take advantage to enter or exit positions at better prices
Market often reverses sharply after the hunt
📊 Why Traders Should Care
Can wipe out retail positions quickly
Creates false breakouts or breakdowns
Often happens before strong moves in the opposite direction
⚖️ How to Protect Yourself
Avoid placing stop-losses at obvious levels
Use smart position sizing
Watch for unusual volume spikes
Be patient — don’t chase the market
🧠 Final Thought
Stop hunts are common in crypto due to thin liquidity and volatile markets. Recognizing them can help traders avoid unnecessary losses and spot potential setups for bigger moves.
In trading, knowing where the big players are hunting stops can be a real edge. 🎯
