Downward Momentum Slows as Market Approaches Liquidity Zone

Mar 16

The chart shows a clear period of sustained selling pressure where price gradually moved lower after failing to maintain earlier upward momentum. The market attempted to stabilize following a brief shift in behavior, but buying activity remained limited. As a result, price continued to decline step-by-step, forming a steady downward structure driven by consistent bearish candles.

During this move, the market showed only short pauses where price temporarily slowed before continuing lower. These pauses often indicate that sellers remain in control while buyers are still waiting for stronger confirmation before entering the market.

Currently, price is hovering near a recent low, where momentum appears to be slowing. When the market approaches such areas, it often searches for liquidity. This can lead to a short continuation lower as stop orders and pending positions get triggered. Such movements are common before the market shifts direction.

The projection on the chart suggests a possible liquidity sweep below the recent low, followed by a recovery phase. If selling pressure weakens after this move, price could begin pushing higher as market participants react to the newly created liquidity.

Overall, the chart reflects a market that has been dominated by selling pressure but may soon enter a phase where liquidity dynamics influence the next directional move

Mar 17

Trade active

Mar 18

Trade closed: target reached