Retail is getting trapped again.
And most traders don’t even realize they’re the exit liquidity.
Every cycle, the pattern repeats. Price pumps hard on Bitcoin or a trending altcoin. Social media turns ultra-bullish. Influencers shout “next 10x.” Retail traders enter late — usually after a breakout candle.
Then what happens?
Smart money starts selling into that hype.
Liquidity hunts begin. Stop losses get wiped. Late longs panic. The same crowd that bought the green candle now sells the red one.
This isn’t manipulation — it’s psychology.
When the market moves fast, FOMO overrides logic. Retail traders chase momentum instead of waiting for pullbacks.
They trade emotions, not structure.
From my perspective, the biggest trap isn’t volatility — it’s impatience.
Institutions and experienced traders don’t chase strength. They accumulate during boredom and distribute during excitement. If everyone around you feels “certain,” that’s usually the moment to slow down.
Next time you see a vertical pump, ask yourself:
Am I entering because of strategy… or because I’m afraid to miss out?
The market rewards discipline, not excitement.
So tell me — have you ever realized too late that you were the liquidity?