Tracking Liquidation Zones in Current Market Structure



Looking at the chart setup right now—liquidation levels are clustering around key support and resistance zones. These aren't random; they're where institutions typically stack orders to trigger retail stop-losses and squeeze positions out.

Max Pains Theory in Play

The max pains concept suggests price will gravitate toward levels where the most options expire worthless. Combined with liquidation heat maps, you can spot where real pressure points exist. When these two align, volatility usually follows.

Break the Wyckoff Pattern?

Wyckoff methodology shows us accumulation and distribution phases. The current price action looks like it's testing the accumulation range—but here's the thing: will we see a clean breakout or another retest? The liquidation levels we're monitoring will tell us which way momentum actually breaks.

Key Insight: Pay attention to volume during these moves. Real breakouts come with conviction. If volume dries up near these levels, expect rotation back into the range.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
ShortingEnthusiastvip
· 01-12 06:48
It's the same old trick of institutions harvesting retail investors. The liquidation zone is just a slaughterhouse; all retail traders who enter have to pay tuition fees.
View OriginalReply0
ImpermanentPhobiavip
· 01-12 06:45
Honestly, I'm already tired of the liquidation zone setup. The key still depends on trading volume; breakouts without volume are all fake.
View OriginalReply0
staking_grampsvip
· 01-12 06:43
Here comes that same old narrative about institutions cutting leeks again. But this time, the liquidation clustering is actually somewhat interesting. It's surprising if the max pain theory can be applied. We'll have to see if the trading volume is real or just bragging.
View OriginalReply0
ColdWalletAnxietyvip
· 01-12 06:25
It's the same old scheme of institutions cutting leeks again, Wyckoff breakdown is still a false breakdown... let's wait for volume to tell the story.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)