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# The Market Only Plays by Two Rules: Liquidity and Imbalance



Here is the truth that no one tells you: every market movement has a reason. It is not magic, it is not chaos. It is just **liquidity** or **imbalance**.

**Rule 1: Liquidity is the Fuel**

Big players need money to move. If you see the price rising to previous highs or falling to key supports, it's not a coincidence—there they are hunting the orders you left at those levels. Stops, buy limits, all of that is fuel.

Example: BTC rises 2k usd in a few hours. What happened? It probably swept the stops of the shorts. Now it has accumulated liquidity and can turn.

**Rule 2: Imbalances Fill Themselves**

When the price flies in one direction very quickly, it leaves gaps. Trading voids. And the market does not rest until it fills them. It's as if nature has a horror of the void.

If there is a bullish jump without volume behind it, it is likely that the price will return to fill that area before continuing.

**The Key Question**

Before analyzing: Is the price seeking liquidity or filling a gap? If you answer this correctly, you know what to expect. If not, you are in the dark.

Master this and stop being surprised by the moves.
BTC-2.53%
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