Liquidity trap (in a price range) → Meaning (simple): A liquidity trap in trading is a price zone where tons of orders, leverage, and attention are concentrated, so price keeps getting sucked back there. It feels like a strong level, but in reality it’s a trap where many traders get chopped up (buy high, sell low over and over). Example: Bitcoin hovering between $105K–$110K with big leveraged positions on both sides. Price spikes to $110K → short liquidations → then dumps to $102K → long liquidations → then returns to $107K again. Traders think “breakout soon!”, but most just lose money inside that range.
Selling / Offloading into strength → Meaning: “Selling into strength” means selling when price is strong and buyers are enthusiastic, not when panic starts. Smart money exits while others are still bullish. Example: BTC rallies from $80K to $110K. Retail is shouting “$200K next!”, but long-term holders quietly sell part of their stack between $100K–$110K, locking in profit before any big drop.
On-chain data / On-chain metrics → Meaning: On-chain data is data directly from the blockchain (transactions, wallet balances, coin age, etc.), not from an exchange price chart. On-chain metrics try to show who is buying/selling, at what price, and how long they held coins. Example: Metrics like: LTH Supply – how much BTC is held by long-term holders. LTH Net Position Change – are they adding coins or reducing? LTH-SOPR – are long-held coins being sold at a profit or loss? If LTH-SOPR spikes above 1, it means old coins are being sold at profit, often near cycle tops.