Today’s Bitcoin sell-off wasn’t just a fluke—it came with warning signs that savvy traders should notice. First, the market hunted for liquidity near all-time highs (ATH), forming an “upthrust”: buying pressure was being absorbed while selling continued to push down—a classic early signal to beware of a deceptive bounce. Second, the H4 timeframe revealed divergence, showing weakening buying momentum even as prices bump higher.
So, if BTC snaps back from levels like $117,500, how can you be sure it’s not simply a trap?
The key lies in recognizing the nature of the drop—it was impulsive, not just a gentle correction or a routine liquidation event in a bull trend. And yes, volume spiked, and long positions were liquidated—but the real signal comes next: if price ascends through sharp, aggressive moves followed by textbook pullbacks, especially with structure flipping bullish in lower timeframes, then you’re likely witnessing a genuine reversal.
In short: watch for impulsive advance + smooth corrective pullback + lower-timeframe structure shift—that combination separates real moves from traps.
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