When Liquidity Looks Too Good to Be True: 3 Bullish Traps That Caught Traders Off Guard

Market liquidity can be deceptive. Just because there's volume doesn't mean the move is real. Here are three scenarios where apparent bullish signals turned into nasty liquidity traps:

**Case 1: The Spike on Light Volume**
You spot a sudden pump, charts look promising. But dig deeper—that rally happened on suspiciously thin order book depth. When the first sellers appeared, price collapsed instantly. Classic trap.

**Case 2: The Fake Breakout Above Resistance**
A coin breaks above a key level with what seemed like conviction. Stops got triggered, retail FOMO kicked in. Then the big players dumped. Liquidity gathered above, not below—and that's exactly what they were hunting for.

**Case 3: The Dead Cat Bounce Pattern**
After a sharp drawdown, a relief rally forms. Looks bullish on the daily chart. But order flow shows institutions quietly distributing, not accumulating. The trap snaps when volume dries up.

The lesson? Real bullish moves have substance. Check beneath the surface—watch how professionals actually position themselves, not just what the candlesticks suggest.