🐋 How do liquidity maps manipulate institutions?
1. Fake Walls (false liquidity walls)
*Institutions place large limit orders at a visible price level on the map (for example, a large sell order). This creates an apparent resistance wall, leading traders to think:
"It's going to go down, I better sell or open a short"
But many times, those orders are canceled just before being executed, and the price ends up going in the opposite direction.
This is called spoofing (prohibited in regulated markets, but common in crypto).
2. Liquidity grabs
If they see many buy orders below (strong support), they can deliberately push the price down (with aggressive selling) to:
Hunt stop-losses.
Fill their own buy orders at a better price.
Then, once they capture that liquidity, the price quickly reverses upwards.
This movement is sometimes called "stop hunt" or "spring" in Wyckoff analysis.
🎯 How to protect yourself?
*Do not blindly trust the map. View it as one more indicator, not as absolute truth.
*Look for confirmation: if there is a large order, observe if the price really reacts as it approaches.
*Watch for quick changes: if an order constantly appears and disappears, it’s probably a trap.
*Combine with real volume and price action to validate the intent