#BinanceABCs Recently, the crypto market has been fluctuating back and forth. How should I put it—liquidity has become the top priority in determining market trends.
Looking at the recent market movements, "false breakouts" are happening one after another. The real reasons behind this are actually quite simple: on one hand, there is a severe lack of liquidity; on the other hand, funds are blindly chasing liquidity. As soon as someone tries to forcibly push up and break through a key level, they are immediately targeted and precisely sniped by lurking market makers and large traders. The end result is the market fizzling out.
Fundamentally, the market currently lacks two things: first, clear directional guidance; second, sufficient trading volume and liquidity to support it. Without these two, it’s almost impossible to generate a sustained trend.
In this kind of stalemate market, traders must keep a close eye on two things. The first is the area where potential stop-loss orders are likely to cluster—these are the most likely places for trouble. The second is the critical points where the trend might reverse. Once these two are thoroughly understood, traders can truly take control in a ranging market. $BTC
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BrokenDAO
· 2025-12-16 09:00
Liquidity shortages, capital chasing, market maker sniping... in simple terms, it's the breakdown of the incentive structure. No one truly wants to provide depth; everyone is waiting to cut the leeks. This is very similar to some DAO governance.
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SnapshotDayLaborer
· 2025-12-16 08:52
Lack of liquidity is just cutting leeks, the market makers are really incredible.
#BinanceABCs Recently, the crypto market has been fluctuating back and forth. How should I put it—liquidity has become the top priority in determining market trends.
Looking at the recent market movements, "false breakouts" are happening one after another. The real reasons behind this are actually quite simple: on one hand, there is a severe lack of liquidity; on the other hand, funds are blindly chasing liquidity. As soon as someone tries to forcibly push up and break through a key level, they are immediately targeted and precisely sniped by lurking market makers and large traders. The end result is the market fizzling out.
Fundamentally, the market currently lacks two things: first, clear directional guidance; second, sufficient trading volume and liquidity to support it. Without these two, it’s almost impossible to generate a sustained trend.
In this kind of stalemate market, traders must keep a close eye on two things. The first is the area where potential stop-loss orders are likely to cluster—these are the most likely places for trouble. The second is the critical points where the trend might reverse. Once these two are thoroughly understood, traders can truly take control in a ranging market. $BTC