The Art of Crypto explains how to spot real breakouts versus fake ones by watching where candles actually close. A close above a level shows acceptance and real buying interest. Weekly candle closes matter most because intraday moves can trick you into entering too early.
The only way to know if a certain level is going to be a liquidity sweep or if this is going to be a confirmed breakout is by using the candle closes. For example, if we manage to get a candle close above this level, it shows that throughout the course of the week there is enough interested buyers to step into the market at these current prices to keep the price above a certain level. And if we have evidence of that through the use of a candle or a weekly candle close, it shows that there is reason and there are enough people to maintain price at this level. This is a concept known as acceptance. Now, the flip side of the equation, you're going to get a rejection if price makes an initial push above this area, but it eventually fails because there is not enough volume to keep the price above this level. It means that there is a lack of buying interest at high prices, and that's why price fails. And the only way we're going to be able to find that out is through candle closes. So seeing how this is a weekly liquidity level that we were looking at, and we are looking at this from the perspective of the weekly chart, it means that we cannot draw a conclusion until get that weekly candle close.
