Bitcoin Cash keeps its traders on alert as it wrestles around the $609-610 area, eyeing the critical high from December 2024 near $640. The market has been bullish, but once BCH surpasses this liquidity above $640, be cautious — *bearish setups may appear*!
Here’s a quick summary for smart traders:
⚡ **Current Action:** BCH is trading near $609, showing strong momentum trying to reach the resistance at $640 identified from last December’s high. This area is a liquidity hotspot where stop orders accumulate.
⚡ **Liquidity Withdrawal Vision:** The price is likely to trigger liquidity withdrawal by rising above $640 to flush out stop orders and late buyers. After this withdrawal, the market typically sharpens its reflection — entering a bearish phase where sellers take control.
⚡ **Monitoring Bearish Setups:** Once liquidity exceeds $640, traders should prepare for a potential bearish trend or corrective movement. These setups usually indicate professional players absorbing liquidity on the buy side and then pushing the price down.
🔑 **Trading Tips:**
- Pay attention to the critical breakout and rapid reversal above $640 — this is the signal for liquidity withdrawal.
- Place stop-loss orders above the high of the withdrawal for short positions to manage risk.
- Look for confirmation via bearish price action after the withdrawal, such as rejection candles or forming lower highs.
- Consider taking profits if you benefit from the initial rise but stay alert for reversal signs.
🚀 **Targets and Levels:**
- Entering sell positions: after a break and turn above $640.
- The main support levels to watch: $590 and $572, potential bounce areas or profit targets.
- Stop-loss: slightly above the high of the withdrawal to avoid early stops.
This classic liquidity withdrawal strategy takes advantage of smart money to 'fish' for orders and shake out weak hands before major moves. Stay cautious, combine it with RSI signals or trading volume, and trade with a clear plan.
Get ready to trade in the liquidity withdrawal setup for BCH like a pro! 📉💥
*Trade responsibly and follow your plan!* ✔️
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