🚨 The Liquidity Trap I Almost Fell Into 🚨
The chart looked perfect. BTC breaking out of a 3-day consolidation. Clean entry at $91.5K. Target $94K. Risk/reward: 3.5:1.
But something felt off. I zoomed out to the higher timeframe.
There was a massive resistance zone at $92.8K-$93.5K from early January, where significant volume changed hands. That's where late longs entered. That's where they're sitting underwater. That's where they'll sell to break even.
Then I checked the liquidation map: $124M in long liquidations stacked below $88.5K.
The setup: squeeze longs above $93.5K or flush them below $88.5K. Either way, volatility was coming.
I waited. Price hit $92.3K, rejected hard, swept $89.2K, liquidated the longs, then launched to $95K two days later.
The lesson: The obvious breakout is often the trap. The real move comes after the liquidity grab.
What I'm watching now:
Major liquidity clusters on BTC at $88K (below) and $95.5K (above). One gets taken first. That determines the next move.
Do you check liquidation maps before entering trades?
