As highlighted with the red lines, we can see both long and short stops still remain in the market.
Liquidity can be found beneath the long stops and above the short stops, market maket will look for these stops to grab liquidity.
What is OTE?
OTE is the Optimal trade entry, it is specified as the 0.705
The OTE is found to be a very reliable retracement level that often is visited by market makers.
Our current price action looks like a retail trap, we are trading at the 0.618 but are not seeing any significant bounce yet.
Market makers will usually try to take the long stops before going up, these can be found just beneath previous low at 3535 USD on Binance respectively. We are trading just above this previous low and there would be little reason to go up without taking the liquidity. Coincidence or not, the OTE can be found just below these long stops and would be our long target.
What is OTE target?
OTE target is usually just above previous high
The 0.272 is usually a that will be found after hitting the OTE
We can also see that liquidity of short stops still remain at 4450 USD on Binance respectively.
Again, coincidence or not, the short stops, and thus the liquidity, can be found just above the target of the OTE , this would be our sell target (0.272 )
Hiting the OTE and then hitting the OTE target will mean we take liquidity on both sides perfectly.
It also has some confluence with other factors like and wyckoff, I will update these below.
For information about the OTE and the trademarks of market makers I highly recommend checking out: innercircletrading (link found below)
Innercircletrading provides high level content and all credits concerning the OTE go to him.