Why does the market maker need liquidity during an uptrend?

A market maker cannot sell large quantities of assets unless there are buyers matching the sell orders.
Therefore, the price is often pushed upward first to attract liquidity.

Typically, during an uptrend:

• New buyers enter due to FOMO
• Traders enter on resistance breakouts (Breakout)
• Stop-loss orders for short positions are triggered
• Shorts are liquidated, turning into buy orders in the market

All these orders convert into buy-side liquidity (Buy-side Liquidity).

This allows the big player to gradually sell their positions during the strength of the move.

That's why sometimes we see high buying volume with a slowdown or pause in the upward movement, because a party is absorbing the demand and selling large quantities at the same time.

After the correction phase ends, the price often begins to move in the opposite direction.

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