The crypto market is under clear pressure, and the weakness is showing up first in equities. Crypto-linked stocks like Coinbase and MicroStrategy are sliding faster than Bitcoin itself, while miners continue to unwind. When stocks tied to crypto underperform the underlying asset, it usually signals risk appetite is fading.
Bitcoin is down roughly 27% on the month, with Ethereum off even more sharply. Meanwhile, ETF outflows from products like iShares Bitcoin Trust and ProShares Bitcoin Strategy ETF show institutions are not aggressively buying dips.
At the same time, broader markets like the S&P 500 and Nasdaq-100 are soft, reinforcing that crypto is trading in line with risk assets, not as a hedge.
Volume is spiking on red days, sentiment sits in extreme fear, and macro pressure from rising tariffs adds another layer of uncertainty. This isn’t panic, it’s repositioning. The market is defensive, liquidity is rotating, and traders are watching closely for who leads next. Speaking of liquidity….I have something very important you need ot look at down below 👀
🤔 How to Trade Liquidity Sweeps Profitably (Avoid Getting Stopped Out)
Most traders think price moves because of news, indicators, or patterns.
Price moves because of liquidity. Get that in your head! Here’s a full on video of it, so you don’t get stop hunted again!
Liquidity is simply where orders are resting, stop losses, breakout entries, liquidations, and pending limit orders. That’s where money sits. And large players need liquidity to enter and exit positions.
No liquidity = no move.
When you understand this, you stop chasing candles… and start anticipating where price needs to go.
Why Liquidity Matters More in This Market
Right now we’re seeing:
Heavy volume spikes on down days
ETF outflows
Crypto stocks leading lower
Fear dominating sentiment
That environment creates one thing:
Volatility around liquidity pools.
In fearful markets, stops stack aggressively above highs and below lows. Retail traders cluster in obvious areas. That creates targets.
Smart money doesn’t chase price.
It moves price into liquidity.
📊 Monday & Tuesday: Liquidity Told the Entire Story
This week was a perfect example of why I focus on liquidity every single day inside the Discord group.
Monday: The Trap Without Expansion
On Monday, price swept both buy-side and sell-side liquidity.
We took highs. We took lows.
But here’s what mattered:
We never broke past London’s high.
That was the tell.
When price sweeps both sides but fails to expand above a key session high, it signals weakness, not strength. That failure to break London’s high was a key indication the downtrend would continue.
And that’s exactly what happened.
Liquidity was cleared, but there was no true bullish displacement.
Sellers stayed in control and we head back down for a short called at 8:45am CST in the discord group!
Tuesday: The Early Sweep and Reversal Setup
Tuesday gave a completely different profile.
Around 7:30am CST, before the New York open, we saw an early liquidity sweep. Stops were taken. Retail got positioned the wrong way. This is why I’m usually around 8:50 AM CST to position myself correctly.
Then at open, price sold aggressively back down toward Asia’s low.
Now here’s the shift:
Instead of continuing lower like Monday, price showed strong bullish candlesticks and displacement. Momentum flipped. Structure shifted.
That was the signal.
We pushed back above London’s high, something Monday failed to do. That break wasn’t just a move. It confirmed the reversal out of the Asia/London downtrend.
The Lesson
Liquidity isn’t just about sweeps.
It’s about:
Where sweeps happen
Whether price expands afterward
And which session high or low gets respected or broken
Monday = sweep without bullish expansion → continuation lower.
Tuesday = early sweep, reclaim, break of London high → reversal long.
This is why I map:
Asia high/low
London high/low
Previous day levels
Every. Single. FRICKIN’ Day!
Because the sessions leave footprints.
And if you follow liquidity, the market becomes much less random.
❓ Quickfire FAQ…What Are Double Liquidity Sweeps(And How Do You Trade Them)?
A double liquidity sweep happens when price takes liquidity on both sides of the market before making the real move.
First, it runs one side (buy-side or sell-side), triggering stops.
Then it reverses and sweeps the opposite side. Only after both pools are cleared does expansion occur.
It’s a stop-hunt… twice. Look familiar where you get stopped out twice?
Why does this happen?
Large players need liquidity to build positions. If there isn’t enough resting orders on one side, price will rotate and grab liquidity from the other side.
That “whipsaw” action isn’t random. It’s accumulation or distribution.
How do you trade it (5M / 15M / 1H)?
Mark equal highs & lows (obvious liquidity).
Wait for first sweep, don’t enter yet.
Watch for second sweep on the opposite side.
Enter on displacement + structure shift.
Stop goes beyond the final sweep.
Target = opposing higher-timeframe liquidity.
What’s the edge?
Most traders get stopped on the first move. Impatient traders get trapped on the second. Professionals wait for both sides to clear.
That’s when the real move begins.