Liquidity is the pool of pending buy and sell orders resting at key price levels where traders commonly place entries or stop-losses. These areas often include previous highs, previous lows, equal highs/lows, trendline extremes, and major support or resistance zones. Large institutions need liquidity to execute their positions, so price is frequently drawn to these areas before making its next significant move. A liquidity sweep by itself isn't enough to trade, you still need confirmation, such as strong displacement or a break of market structure, before confirming the likely direction. Check the BTC chart image that circled level was a previous traded level where stop loss are accumulated and price swept it and break below a key structure level, so liquidity sweep alone can't give you they guarantee you wait for a structure break
