There are dense yellow areas above in the chart, these are the liquidity zones for short positions. In other words, if the price reaches these levels, short positions opened at a loss will be liquidated. This could push the price upwards, as liquidations occur in the buying direction.

But the critical point here is: these areas are only liquidity clearing points. They are not a signal for a permanent rise. Generally, sellers step in at these levels. Because large players first collect this liquidity, then reverse the market.

The possible scenario is as follows:

1. The price spikes up towards the yellow area → Short liquidities are cleared.

2. After the liquidity is taken, a sharp sell-off may occur → A pullback begins with profit-taking and new short entries.

3. If the market breaks this yellow area with volume and cannot hold above it → This area becomes a "liquidity trap," and the decline accelerates.

Therefore, it is advisable to be cautious when approaching these levels. Transactions here should be quick and planned. Otherwise, you will become prey to large players.

#btc #eth #liquidation