 Alright guys, this is going to be my first video on a very long time So in this video What we're going to do is we're going to show you how to find Major liquidity points. So a liquidity point is essentially an area of support and resistance In which a lot of trading is going to happen So when a liquidity point occurs you generally will see a reversal into the other direction Or at least a lot of chop in that area showing that there's a lot of trading and Battling between the bulls and the bears going on there. So Just give you guys a quick example of an asset that we can kind of utilize as our example here We're just going to take a look at Bitcoin and How the liquidity points apply on the chart for Bitcoin? So first and foremost when you choose a chart that you want to analyze In crypto, especially these large caps. What we're going to have to do is we're going to have to choose a pair that represents Spot trading not futures trading because futures volume can be easily manipulated I find BTC USDT to be a pretty reliable source of volume That's organic and reliable to to analyze so without further ado what we're going to do here is We're just going to start with So obviously this right here is a large point in which trading occurred We're going to start from here because we're going to go in a timeline from Historical to now so if you look at the chart here You can see that there was around an entire year or two is worth of action that occurred here And once we finally broke out of this trading zone, we had a major bull market That is because there was a lot of trading going on here a lot of bulls and bears battling and as soon as the bears had lost that battle Seeing a breakout on this level for the fourth time Generally the more tests we have and then a breakout occurring after all of those tests We see a quite of a large move occurring. So that's what happened here. So Eventually, you know bears gave up We broke out here You know created some resistance here Obviously, there is a little bit of resistance here because of this 20k level that occurred back then So when we hit that liquidity point of 20k that was an historical level from before Bulls and bears started battling again because no one really truly knew in the direction of the asset was headed So once that broke through Obviously 30k was also a pretty Questionable level, you know because people were already timing the top at 20k So when 30k came about people began questioning that area as well Obviously same thing goes for this 40k level. We saw a rejection at the 40k level liquidity zone That's just because of whole numbers in Bitcoin when it's reaching all-time highs We're always going to see some kind of liquidity tests Here we go. So we bounce back down to the 30k level, you know, this support zone Obviously, it was a psychological zone So once you go back to this whole number again, and you have the bulls and the bears battling once again here Obviously the bulls came out on top and then we saw I break out to This area here. So this was the 50 to 60k level In which was actually 50 60 to 65 58 to 65 around here. So the reason why this level Was actually Pretty close to the top is probably because everyone was calling for 100k So when people are calling for 100k and that's sort of the narrative But the pump started at 3k, obviously you're not gonna make it to 100k. That's a little bit optimistic. So It's probably, you know Pretty expected that we topped out way before then so what happened here is we topped out and then you saw The major sell-off here, right? So basically bulls got slaughtered here and then we came back to this Liquidity zone that was here at 30k. So when you see a 50% drop in crypto generally, you know there's enough buyers that are willing to come back in and Create some more momentum, which is what happened here so Came back here Rejected a little bit again, you know here to create some kind of questionable resistance Not allowing bulls or bears to really guess where this is gonna go because obviously if you're looking at the chart up to this point You think there's a possible cup and handle. So The people who are probably buying this breakout and cup and handle probably got played by the market makers Which created a sell-off here back to this liquidity point. So once we came back to this liquidity point What happened was we came out and tried to create that cup and handle look again So when you create that cup and handle look again, you probably the elites or whoever had the most money was able to Lure in a lot of top buyers. So when the top buyers came in Well, first of all, it went a little bit above this point because there was probably some stop losses that were shorting here with respect to Stop loss up on the break So what they did probably was they broke the all-time high to create that liquidity from shorts getting stopped out For themselves to sell into and then that's when the bear market began So you can see here when we came back to this liquidity point here We saw a little bit of trading in action again before it broke down again So once it broke down again, you can see that once again another major liquidity point Right here. This is a very major liquidity point at 20k when that 20k level got tacked. We saw an insta bounce from 17k all the way to 24k creating another trading opportunity Obviously bears are still very bearish, you know the fundamentals of economics of everything is Really scary still at this point. So people are selling still people are selling their assets thinking that there's gonna be a prolonged bear market Which then drove things back this liquidity point once again. So you can see there's action at this liquidity point once again Creating a smaller bounce this time because there's just not that much momentum. Although there was some momentum, right? So when that bounce failed here We dropped right this is kind of in a no man's land zone There is no liquidity point where this Consolidated and the reason that I think because of that is because there was probably a lot of stop losses here That we're waiting to think that this level right here was The point in which we would bottom right so obviously trading is entirely psychological We're playing against people with very large pockets that control the price and have enough coins to make the price go wherever they want so Considering there's probably a lot of stop losses here, right? But at the same time these deep pockets people who sold the top here sold here They are looking to re-accumulate their purchases So when they're looking to re-accumulate their purchases, what they're gonna do is they're gonna go below this area support Stop everyone out and then start accumulating again That's why you see this very large volume profile of volume that occurred at this level because they probably scooped up Tons of coins at the 1670 K level right preparing them for another bull run So when they start to pump the market again to whoever knows how much, you know, 100 K 20 30 K, whatever They were able to get these cheap Prices which allow them sets them up for the next run to make the most money on the next run So yep there again. We have this liquidity zone here. Obviously it broke right through You can see that there's a lot of large volume profile here. So if I Suspect that if we are able to hold this price Above 20 K, we're probably gonna stay above 20 K for a long time just because there's so much volume trading at this liquidity point and There's not enough momentum to the downside to really put things back below it people are now starting to re-accumulate their coin So that is my lesson on liquidity zones Supply and demand you can use this essentially for any asset That is the logic behind it. You can see that we don't really need any fancy indicators to apply this logic. It's basic Trading knowledge that works and has always worked through the ages So that is my lesson for today If you're not in our x-rays channel yet go to discord.gg slash x-rays or check us out on x-rays on that We have a web and mobile app that's discord integrated. We've got a lot of stuff going on here guys So you have any questions just come in the chat shoot me a DM. I'll be happy to help