Lately, Bitcoin’s price has been moving in a way that traders call “liquidity hunting.” This means the price quickly moves up or down to hit areas where many traders have placed stop-loss orders or pending buy/sell orders.
Think of it like this:
Big traders (often called “whales”) know where most people keep their stop-losses. They push the price into those levels to trigger those orders, so they can buy or sell in large amounts without problems.
Example
If Bitcoin is near $60,000 and many traders have stop-losses just below $59,500, the price might suddenly drop to that level, trigger those orders, and then bounce back up.
The same can happen upwards — a quick spike above a recent high to grab buy orders.
Why This Happens
It gives big traders the liquidity (lots of orders) they need.
It shakes out small traders before the real move starts.
What You Can Do
Avoid placing stops exactly at obvious levels.
Wait for the price to “grab liquidity” and then look for a strong bounce or continuation before trading.
In Short
When we say “Bitcoin is hunting the liquidity,” it means the market is collecting orders from certain price spots before making its real move. If you understand this trick, you can avoid getting stopped out too early.