Liquidity Grab (Stop Hunt)
A sharp move through an obvious level to trigger clustered stop-losses, before price reverses the other way.
A liquidity grab (or stop hunt) is a sudden price spike through a level where stop-loss orders obviously cluster — just above a resistance or below a support — triggering those stops to generate a burst of liquidity, after which price often reverses sharply the other way. The stops become fuel for larger players to fill their orders.
It’s why the most “obvious” levels — round numbers, recent highs and lows — are precisely where fakeouts happen. In crypto’s thin, 24/7, highly-leveraged markets, stop hunts are common and can trigger liquidation cascades. Practical defenses: avoid placing stops at the most obvious levels, and treat sharp spikes through key levels with suspicion until they hold.