Huge price swings need massive liquidity to happen. Bitcoin dropped from $63,000 to $59,000 in hours because capital flooded in. Retail traders lose money treating double tops as fixed resistance when price sweeps past them and the pattern breaks.
Now, in order for price action to make any sort of aggressive movement in the market, you need liquidity. If we imagine the market as like a Lamborghini, Lamborghini can go real far, real quick. And that's the same thing about the markets, right? If you take a look at the markets yesterday, kaboom, right? Bitcoin went from $63,000 all the way down to $59,000 in the span of a couple of hours. So this thing can move quick. In order to, you know, drive this type of performance, you need fuel. Now, in the context of the market, fuel tends to be liquidity. Now, liquidity is oftentimes a really fancy term, but all you need to understand about liquidity is that It just might need a big influx of money entering into the markets that drives these aggressive moves. Now, just to tie this back into the context of relatively equal highs and lows, when retail traders tend to think about relatively equal highs and lows, and I'm sure you will be able to resonate with this as well, because I know at some point I did the same thing, which is the fact that, oh, when I see double top, that is strong resistance, or like, oh, let me go short at double top. But what they fail to realize is that 2 levels that are relatively equal— Now, this is completely different By the way, if this previous high actually gets swept out, because that no longer makes it a relatively equal level, just understand whenever you have these relatively equal levels, retail traders are gonna look at this double top, double bottom, and they're gonna short.
