I have seen this a dozen times. Traders got liquidated on the big wick down and are now fearing lower prices. The real move has already occured so price consolidates and forms a range. When price reaches for the lower bound of the consolidation everybody expects a second leg lower, however instead price picks up liquidity and goes for the liquidity on the upper side of the consolidation - thereby taking out shorts (and those who sold spot on the move lower chopping them up) who were hoping on a free-ride lower.