According to Liquidity Doctor (@doctortraderr), recent crypto price action showed a classic market maker strategy: after forming a bearish engulfing candle, the price was quickly pumped at the next candle's open, triggering short positions and stop-loss orders. This 'nasty price action' led to a short squeeze, causing retail traders' stop-losses to be hit before the price reversed. Traders are advised to watch for similar trap patterns and adjust risk management strategies, as such volatility can present both risks and new trading opportunities (source: Twitter/@doctortraderr, May 19, 2025).

According to Liquidity Doctor (@doctortraderr), recent observations indicate that market makers (MMs) frequently manipulate price action by using bullish and bearish engulfing candles to mislead retail traders. When retail traders spot a bullish engulfing candle and enter long positions, MMs often reverse the price direction, resulting in quick losses for those traders (source: @doctortraderr, Twitter, May 18, 2025). This highlights the importance for crypto traders to avoid relying solely on engulfing candle signals and instead consider broader market context, liquidity zones, and order flow analysis to prevent falling into market maker traps.