Bitcoin price has fallen toward the $73,000 region after a wave of ETF outflows, derivatives pressure, and long liquidations triggered fresh panic across the crypto market.

According to crypto.news price data, Bitcoin (BTC) price dropped more than 4% over the past 24 hours and briefly touched the $72,800 area on May 28 after bulls failed to reclaim the $80,000 psychological resistance zone earlier this week. Ethereum, Solana, XRP, BNB, and Hyperliquid also posted sharp losses as total crypto market capitalization slid below $2.5 trillion.

The latest sell-off came as institutional investors rapidly reduced exposure through spot Bitcoin ETFs. Data from SoSoValue showed U.S. spot Bitcoin ETFs recorded nearly $733 million in net outflows on Wednesday alone, the largest single-day withdrawal since February. BlackRock’s iShares Bitcoin Trust led the decline with roughly $527.8 million in outflows, its second-largest daily bleed on record.

Over the past three weeks, spot Bitcoin ETFs have collectively lost more than $3 billion. The sustained withdrawals have removed a major source of spot demand that helped drive Bitcoin’s recovery earlier this year. At the same time, Coinbase Premium has turned negative, showing weakening buying activity from U.S.-based institutional and retail participants.

Macro pressure has also intensified after oil prices surged amid renewed Middle East tensions. Traders have reduced exposure to risk assets after reports surrounding potential disruptions tied to the Strait of Hormuz and uncertainty around U.S.-Iran negotiations.

Rising energy prices have complicated expectations for Federal Reserve rate cuts, especially as investors remain cautious ahead of upcoming U.S. inflation data.

Meanwhile, derivatives traders are now focused on one of the largest Bitcoin options expiries of the year. Data from Deribit shows over  $6.25 billion worth of Bitcoin options contracts, representing around 85,679 BTC contracts, are set to expire on Friday, May 29.

The largest concentration of call options sits near the $80,000 strike, while heavy put positioning has formed around the $75,000 region. Deribit’s max pain level currently stands at $75,000, the price where the highest number of contracts would expire worthless.

Options positioning has become increasingly problematic for bulls because Bitcoin is now trading well below the main concentration zones heading into settlement.

Analysts tracking derivatives flows noted that traders had spent much of the past month positioning for BTC to stabilize near higher expiry regions before the market abruptly reversed lower this week.

Analyst Ardi warned that Bitcoin’s move away from the major options positioning zones ahead of expiry could leave bullish traders trapped.

“When we see price moving away from the major areas of options positioning into expiry, it usually means one side of the market is about to get trapped badly….So right now, the bulls are the ones under pressure,” said Ardi

At the same time, liquidation activity has intensified across leveraged markets. CoinGlass data shows nearly $330 million in Bitcoin long positions were liquidated over the past 24 hours, contributing to more than $870 million in total bullish liquidations across the broader crypto market.

Bitcoin loses key support as liquidation clusters build near $71K

The technical structure has also weakened considerably following Bitcoin’s rejection from the $82,000 region earlier this month. On the daily chart, BTC has now broken below several short-term moving averages while continuing to print lower highs and lower lows.

The MACD histogram has extended deeper into negative territory, while the MACD line itself remains below the signal line after confirming a bearish crossover earlier this week. Meanwhile, the Relative Strength Index has fallen toward the 35 level, placing momentum near oversold territory but without showing a confirmed bullish divergence yet.

A separate chart shared by trader Altcoin Sherpa in a May 28 X post, showed Bitcoin losing support across the 4-hour exponential moving averages after failing to hold above the $76,000 region. The analyst warned that a sustained breakdown from current levels could drag BTC toward the $71,000 area.

“BTC close here and I think we go to 71k or something around there. 4h EMAs lost the bullish trend but I still think we’re fine in the overall context,” noted the analyst.

Meanwhile, analysts at Crypto World said Bitcoin has continued showing weakness after facing rejection near the $78,000 region earlier this week. The analysts noted that $73,700 remains the immediate support level to watch on the 4-hour chart.

According to them, a successful defense of that zone could trigger a short relief rally due to a bullish RSI divergence forming at current levels. However, failure to hold above support may expose Bitcoin to a deeper decline toward the next major support area near $71,000.

CoinGlass liquidation heatmaps also show large liquidity clusters sitting between $71,000 and $72,000. Those zones often attract price action during periods of elevated leverage because market makers and large traders tend to target heavily concentrated liquidation pockets.

Below that region, thinner liquidity conditions extend toward the $70,000 psychological support level. A decisive breakdown beneath $71,000 could therefore accelerate volatility rapidly if another wave of long liquidations enters the market.

Despite the heavy selling pressure, some traders believe the current correction still remains within the structure of a larger bullish cycle. Bitcoin continues to trade above its March swing lows, and spot demand has not fully disappeared despite the ETF outflows.

ETF outflows and options expiry leave bulls defending $70K support

Institutional positioning, however, remains fragile ahead of Friday’s expiry event. Market makers often hedge aggressively near large options settlements, especially when spot price moves sharply away from major strike concentrations. With Bitcoin trading several thousand dollars below the dominant $80,000 call wall, hedging flows may continue adding pressure into settlement.

Order book data also shows buy-side liquidity concentrated primarily between $72,000 and $74,000. If those bids weaken during U.S. trading hours, traders may begin targeting the $70,000 support floor directly.

Funding conditions across derivatives exchanges have also deteriorated. Several perpetual futures markets briefly flipped negative after the latest sell-off, showing traders are increasingly positioning for further downside rather than expecting a quick rebound.

Meanwhile, open interest has started declining alongside price, a sign that leveraged positions are being forcefully closed rather than rotated into fresh longs. Combined with negative Coinbase Premium readings and continued ETF withdrawals, the setup has left bulls with limited short-term catalysts ahead of expiry.

For now, traders remain focused on whether Bitcoin can defend the $72,000-$70,000 support range through Friday’s settlement window. Failure to hold that region could expose BTC to a deeper correction toward the mid-$60,000 area, while a recovery back above $75,000 may ease immediate pressure and reduce the risk of another liquidation cascade.

• Bitcoin (BTC) is down to around $73K amid ETF outflows and geopolitical tension.
• Over $2B in ETF outflows and $900M liquidations added selling pressure.
• The key support sits at $72,650 with RSI near oversold levels at 34.82.

Bitcoin slipped below the $73,000 level as a combination of geopolitical escalation, heavy ETF redemptions, and large institutional sell pressure weighed on the market.

At the time of writing, Bitcoin was trading around $73,235, after briefly touching an intraday low of $72,604 from a high of $74,490.

The decline has extended a multi-week decline that has already erased more than 8% over the past 14 days and nearly 33% over the last year.

Geopolitical shock and forced liquidations accelerate the downtrend

The sharpest part of the decline came after renewed US military strikes on Iran, which triggered a broad risk-off reaction across global markets.

Crypto assets were hit particularly hard due to their higher leverage exposure.

During the selloff, more than $900 million in crypto positions were liquidated, according to market data compiled during the session.

The liquidations were concentrated in over-leveraged long positions, which forced additional selling into already weakening order books.

This cascade effect pushed Bitcoin below the $73,000 threshold and briefly accelerated downside momentum before stabilising within the day’s range.

The move also coincided with increased correlation to traditional risk assets, with Bitcoin’s correlation to the Nasdaq Composite reported at 0.96, one of the highest levels seen in recent months.

Bitcoin ETF outflows deepen institutional selling pressure

Alongside macro-driven volatility, institutional flows added sustained pressure on Bitcoin’s price.

Spot Bitcoin exchange-traded funds recorded eight consecutive days of net outflows, marking one of the longest negative streaks since their introduction.

On May 27 alone, ETF outflows reached approximately $733 million, contributing to a broader net withdrawal exceeding $2 billion since mid-May.

These redemptions reflect consistent selling pressure from institutional investors, reducing exposure during the recent downturn.

The largest pressure point during the session was linked to a reported $1.3 billion institutional ETF-related block trade, involving approximately 29.2 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), executed at an estimated price of $43.16 per share.

The trade was reportedly processed through private market channels before the impact was reflected in spot markets.

Following the execution, Bitcoin dropped roughly 1.4% to 1.5% within minutes, suggesting that liquidity conditions were thin enough for large orders to influence short-term pricing.

This added to the existing ETF-driven selling momentum already in place across the market.

Bitcoin price outlook

Over the past month, Bitcoin has declined by about 4.7%, while the 14-day drop of 8.4% points to a broader downtrend that has steadily developed in recent weeks.

The asset remains well below its highs, trading roughly 42% under the $126,080 peak recorded in October 2025.

Even with the pullback, market activity has remained elevated, with daily trading volume above $44 billion, suggesting that both institutional and retail participants are still actively positioning rather than exiting the market entirely.

This sustained activity suggests that the current move is being driven more by repositioning and flow shifts than by a drop in overall participation.

From a technical perspective, Bitcoin has broken below its 20-day, 50-day, and 100-day moving averages, reinforcing a bearish short-term structure.

The immediate focus is now on the $72,650 support level, which represents the most recent swing low and the key area separating consolidation from deeper downside pressure.

On the upside, the nearest resistance is the 50% Fibonacci retracement level at $74,332, which has now become the first meaningful barrier for any recovery attempt.

If ETF outflows continue or geopolitical tensions remain elevated, a decisive break below $72,650 could expose the market to a potential move toward the psychologically important $70,000 level, where liquidity and buyer interest may be tested more aggressively.

At the same time, momentum indicators are showing early signs of exhaustion on the downside, with the 14-day RSI at 34.82, placing Bitcoin near oversold territory and increasing the likelihood of short-term relief bounces within the broader downtrend.

Aave Labs subsidiaries Push Labs Limited and Push Virtual Assets Limited have received approval from the UK Financial Conduct Authority to operate as registered cryptoasset exchange providers in the country.

According to an announcement shared with crypto.news, the registrations add to the group’s existing FCA Electronic Money Institution authorization and create a dual regulatory structure that allows the company to offer regulated cryptoasset services alongside electronic money operations in the UK.

The approvals come as Aave Labs continues expanding its regulated presence across Europe following its November 2025 authorization under the European Union’s Markets in Crypto-Assets Regulation framework. At the time, Push Virtual Assets Ireland Limited secured a Crypto-Asset Service Provider license from the Central Bank of Ireland, allowing the company to passport services across the European Economic Area.

Stani Kulechov, founder and CEO of Aave Labs, said the UK registrations provide the regulatory base needed to launch “next-generation, zero-fee onchain consumer financial products” in the market.

“With regulatory permissions now established across both the UK and EEA, we are well positioned to scale product development and deliver secure, trusted user experiences across these markets in line with applicable regulatory requirements,” he added.

UK approvals expand Aave Labs’ regulated footprint

Operating under the FCA’s Electronic Money Regulations 2011, Push Labs Limited is authorized to issue electronic money in the UK. Combined with the new cryptoasset registration, Aave Labs said the structure allows the company to build fiat-to-crypto infrastructure designed for onchain financial services.

Within the announcement, the company also linked the regulatory approvals to its strategy of combining blockchain infrastructure with regulated financial products targeted at mainstream users. Aave Labs said the UK and European permissions would support the rollout of zero-fee stablecoin and on-and-off ramp services.

Under the FCA registration framework, Push Labs Limited and Push Virtual Assets Limited were approved as cryptoasset exchange providers for anti-money laundering purposes under the UK’s Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

DAO funding plan backs expansion efforts

As previously reported by crypto.news, Aave Labs received fresh backing from the Aave DAO after token holders approved a funding package worth $25 million in stablecoins and 75,000 AAVE tokens under the “Aave Will Win” framework. 

According to the governance proposal, the stablecoin allocation will cover operational costs over the next 12 months, while the AAVE token allocation will vest across four years.

At the same time, the proposal changed how revenue generated by products tied to the Aave ecosystem would be handled. According to the approved framework, income from services such as Aave Pro will move directly into the DAO treasury, while the community treasury assumes responsibility for funding Aave Labs’ operations.

Aave Labs previously said the strategy was designed to position the protocol for increased institutional participation as more financial firms move on-chain under emerging regulatory frameworks. The company also confirmed Aave V4 as the protocol’s long-term technical architecture.

Despite the proposal receiving roughly 75% support from token holders, some community members questioned the size of the funding package and the governance influence tied to the token allocation. Concerns around the handling of the proposal process later prompted the Aave Chan Initiative, one of the protocol’s prominent delegates, to reduce its involvement in DAO governance.

European currencies continue to trade within established ranges following the heightened volatility of recent weeks. Last week, both EUR/USD and GBP/USD declined before staging a recovery; however, the pairs are once again testing important support levels without developing a sustained directional impulse. Market participants remain cautious amid the absence of fresh geopolitical catalysts and ahead of key macroeconomic data releases from the United States.

Investor attention is primarily focused on the publication of US core Personal Consumption Expenditures (PCE) data, GDP figures, and durable goods orders. These indicators could significantly influence expectations regarding future Federal Reserve policy and determine the next direction for the dollar. Additional market influence is also coming from comments by Bank of England officials and European data on business activity and consumer confidence.

EUR/USD

EUR/USD continues to display sideways dynamics within the 1.1600–1.1660 range. Technical analysis of EUR/USD points to the possibility of a retest of last week’s low near 1.1570 should 1.1600 shift into resistance territory. A resumption of upward movement would only become likely after a confident break and consolidation above 1.1660.

Key events for EUR/USD:

• today at 11:00 (GMT+3): Italian consumer confidence index;
• today at 13:00 (GMT+3): Spanish business confidence index;
• today at 15:30 (GMT+3): US core Personal Consumption Expenditures (PCE) price index.

GBP/USD

Following an upward correction, GBP/USD has once again come under pressure. However, the recent low near 1.3300 remains intact, preserving the likelihood of continued range-bound trading. Technical analysis of GBP/USD indicates the possibility of a test of the nearest support zone at 1.3370–1.3390. A break below this area could lead to a decline towards 1.3300, while a confident rebound from it may return the pair to the 1.3460–1.3500 range.

Key events for GBP/USD:

• today at 11:05 (GMT+3): speech by Bank of England Financial Policy Committee member Sarah Breeden;
• today at 15:30 (GMT+3): US GDP data;
• today at 17:00 (GMT+3): US new home sales.

Overall, EUR/USD and GBP/USD continue to trade in conditions of range-bound price action and subdued market activity. The further direction of European currencies will depend on the release of key US economic data, comments from central bank officials, and the broader dynamics of geopolitical risks across global markets.

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The ICT Turtle Soup is a price action strategy built around false breakouts. It targets failed moves at major support and resistance levels across forex and other markets. Turtle Soup trading focuses on liquidity sweeps that trap breakout traders before price reverses. It uses the reversal that often follows a stop run for entry timing.

This article covers the Turtle Soup forex setup along with its core components. Let’s discuss the conditions traders watch for and the entry framework that goes with them.

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What Is the ICT Turtle Soup Pattern?

The ICT Turtle Soup is a reversal approach based on failed breakouts at key support and resistance levels. This forex reversal strategy comes from the Inner Circle Trader (ICT) methodology and frames failed moves as setups.

Traders aim to identify and take advantage of situations where the price briefly moves beyond a major support or resistance level, only to reverse direction shortly after. This movement is often seen in ranging markets where prices oscillate between established highs and lows.

The concept behind ICT Turtle Soup trading is rooted in the idea of stop hunts and market imbalances. When the price breaks out, it often triggers stop-loss orders set by other traders, creating a temporary imbalance. A failed breakout occurs when price returns inside the prior range after sweeping a swing level.

The ICT Turtle Soup strategy seeks to capitalise on this by entering trades in the opposite direction once the breakout fails and the price returns to its previous range​.

The ICT version adapts the original Turtle Soup setup from Linda Raschke and Larry Connors. In the ICT strategy, forex traders apply it on intraday charts using liquidity and order flow, not fixed 20-day breakout rules.

Typically, traders look for signs of a false breakout. This often shows as price briefly moving above a recent high or below a recent low. Price then fails to sustain the move.

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ICT Turtle Soup vs Breakout Strategies

The Turtle Soup strategy and standard breakout trading sit on opposite sides of the same setup. Breakout traders typically enter when price clears a high or low, expecting momentum to continue. ICT Turtle Soup traders wait for that move to fail, then look to position in the opposite direction.

The choice between Turtle Soup vs a breakout strategy depends on the prevailing market context. Breakouts typically work in trending conditions where buying or selling momentum drives continuation. Turtle soup setups work around range edges where liquidity sits and breakouts often fail.

Core Elements of the ICT Turtle Soup Setup

The ICT Turtle Soup setup uses several elements working together to identify failed breakouts. Each element provides context for where price might sweep liquidity before reversing back inside the prior range.

The core elements traders typically work with include:

• Order flow and market structure across higher and lower timeframes
• Liquidity and stop hunts at swing highs and swing lows
• Internal and external liquidity zones inside the range
• Order blocks and imbalances as supportive context

Each element below shows how price typically reacts during a Turtle Soup trading setup.

Order Flow and Market Structure

Order flow and market structure are critical in analysing the ICT Turtle Soup pattern. This involves observing price movements and traders’ behaviour in different timeframes.

Order flow refers to the sequence of buying and selling activity that drives price. Market structure organises that activity into recognisable patterns of highs and lows. Together, they describe the directional bias of a market.

Traders also track a Market Structure Shift (MSS), which signals a potential change in trend direction. An MSS appears when price breaks an opposing swing point with displacement. Displacement here means a strong, single-direction candle that closes well beyond the broken level.

If you want to analyse higher and lower timeframe price movements, consider using FXOpen’s TickTrader platform.

Higher Timeframe Structure

This refers to the broader trend governing the lower timeframe trend. For traders using the 15m-1h charts to trade, this might mean structure visible on 4h or 1d charts.

Higher timeframe structures may help traders identify the major support and resistance levels. These levels are important as they mark the boundaries within which the market generally oscillates. Traders use these to determine the prevailing market direction and potential areas where false breakouts (stop hunts) are likely to occur​.

This higher timeframe view sets the directional bias for the Turtle Soup setup. A market making higher highs and higher lows suggests a bullish bias, where traders typically look for long-side setups after liquidity sweeps below swing lows. The reverse applies in a bearish structure of lower highs and lower lows.

Lower Timeframe Structure

Lower timeframe structures are examined on hourly or minute charts. These provide a more detailed view of price action within the higher timeframe’s range. They also account for the bullish and bearish legs that dictate a broader higher timeframe trend.

On these charts, traders watch for a Break of Structure (BOS) that aligns with the higher timeframe bias. A BOS occurs when price breaks a recent swing high or low in the trend’s direction. Displacement supports the move when a strong candle closes well beyond that swing point with limited pullback.

Together, these signals confirm the lower timeframe is aligning with the Turtle Soup setup bias.

Liquidity and Stop Hunts

In general trading terms, liquidity represents how easy it is to enter or exit a market. However, in the context of the ICT Turtle Soup pattern, areas of liquidity can be identified beyond key swing points.

These pools of stop-loss orders sit just above swing highs and just below swing lows. These orders are ready to be triggered if price reaches the level.

Stop hunts in trading, also known as a liquidity sweep or stop run, are central to Turtle Soup setups. They occur when price moves through a resistance or support level, triggering clustered stop-loss orders that sit beyond. Triggered stops create a liquidity spike that allows price to reverse back into the range. Traders applying the ICT Turtle Soup strategy typically position against the initial breakout direction once that liquidity has been swept.

Internal and External Liquidity

Internal and external liquidity sit on opposite sides of the higher timeframe range. Identifying both is central to Turtle Soup forex setups, since each plays a different role.

Internal liquidity refers to the liquidity available within the range of the higher timeframe structure. It involves identifying smaller support and resistance levels within the larger range. In a bullish leg, internal liquidity rests beneath each higher low. In a bearish leg, it sits above each lower high. This internal liquidity is often swept to start a counter-move within the broader trend.

External liquidity involves liquidity that exists outside the major highs and lows of the higher timeframe trend. The swing low where a bullish leg started is one external liquidity zone. The swing high where a bearish retracement began is another external liquidity zone.

Quick reference:

• Internal liquidity: inside the higher timeframe range, beneath higher lows (bullish) or above lower highs (bearish).
• External liquidity: outside the higher timeframe range, at the extremes that defined the leg.

Context Tools: Order Blocks and Imbalances

While not directly involved in the ICT Turtle Soup setup, order blocks and imbalances act as supportive context rather than required components. Understanding them can provide insight into where the price might head and the general market context.

Order blocks are areas where significant buying or selling activity has previously occurred, often due to institutional orders. These blocks represent zones of support and resistance where the price is likely to react.

• Bullish order blocks form at the base of upward moves and often act as support on a revisit.
• Bearish order blocks form at the top of downward moves and often act as resistance.

Imbalances, or more precisely fair value gaps (FVGs), are price regions where the market has moved too quickly. When price rapidly moves in one direction, it leaves behind an area with little trading activity. The market often returns to fill these gaps before continuing.

ICT Turtle Soup Setup Conditions

The ICT Turtle Soup setup forms when several conditions appear together on the chart. Each condition narrows the context until a failed breakout becomes the likely outcome.

The conditions for this liquidity grab trading strategy traders typically look for include:

• A defined higher timeframe bias
• Marked internal liquidity inside that bias
• A liquidity sweep that fails to hold
• Lower timeframe confirmation aligned with the higher timeframe direction

Establishing a Bias

Traders begin by analysing the higher timeframe trend, such as the 4h daily charts, to establish a market bias. This analysis may help determine whether the market is predominantly bullish or bearish.

Measurable criteria for the bias typically include:

• A break of structure in one direction on the higher timeframe
• A series of higher highs and higher lows for a bullish bias
• A series of lower highs and lower lows for a bearish bias
• Price respecting key swing points without violating them in the opposite direction

Once the bias is set, traders only look for setups that align with that direction.

Identifying Internal Liquidity

Once the higher timeframe trend is established, traders mark levels of internal liquidity inside the broader leg.

Internal liquidity typically rests in these locations:

• Below recent swing lows in a bullish leg
• Above recent swing highs in a bearish leg
• Beneath equal lows or above equal highs, where stop clusters build
• At round-number levels that attract retail stop placement

These zones are likely to attract stop-loss orders, making them probable targets for a liquidity sweep before the higher timeframe trend resumes.

Liquidity Sweep Trading Condition

The condition is met when price briefly breaks through a marked internal liquidity level, then reverses back inside the range. This typically happens when stop-loss orders are triggered before price quickly returns.

Confirmation comes from wick and close behaviour. Price should sweep the level with a wick that extends beyond it, then close back inside the prior range on the same candle. A small wick relative to the candle body suggests the sweep absorbed liquidity efficiently.

The setup fails when price closes beyond the swept level instead of reversing. A close outside the range, especially with continuation in the next candle, signals a genuine breakout rather than a Turtle Soup condition.

Lower Timeframe Confirmation

After identifying a liquidity grab beyond this internal liquidity level, traders look for an entry on a lower timeframe. They watch for a Market Structure Shift (MSS) in the direction of the higher timeframe bias. Displacement supports the shift when a strong candle closes well beyond the lower timeframe swing point.

Price often retraces back into the range to fill an imbalance before continuing. This retracement frequently meets an order block left behind by the displacement candle. The combination of MSS, displacement, and an order block retest typically gives a precise entry zone aligned with the higher timeframe direction.

Entry, Stop Loss, and Targets

Once the conditions described above appear together, traders typically position in the direction of the higher timeframe bias. The setup gives a clear framework for entry, stop loss, and target placement.

• Entry zone: A limit order at the order block left behind by the displacement candle, in line with the higher timeframe direction.
• Stop loss: Placed just beyond the liquidity sweep wick. Above the recent high for a short trade, below the recent low for a long trade.
• Targets: Set at major liquidity levels such as previous highs or lows, where significant orders are likely to sit.

Position sizing and stop placement should align with the trader’s broader risk management approach. The framework above outlines structure, but potential risk per trade still depends on account-specific factors.

Potential Advantages and Limitations

The ICT Turtle Soup pattern is a trading strategy with several potential benefits and drawbacks.

Advantages

• Defined entry framework: The setup gives a specific entry zone, stop placement, and target structure, which removes ambiguity about where to act.
• Multi-timeframe applicability: The pattern can be applied across different timeframes and market conditions, including ranging and trending markets.
• Structured risk parameters: Stop losses sit just beyond the liquidity sweep, which produces a defined risk distance for each setup.

Limitations

• Steep learning curve: Applying the setup requires familiarity with market structure, liquidity, and order flow, which takes time to build.
• Sensitive to market conditions: Highly volatile or thin markets can produce false signals where sweeps continue rather than reverse.
• Time-intensive: The setup demands monitoring multiple timeframes to identify valid conditions, which limits how many markets a trader can cover at once.

The Bottom Line

The ICT Turtle Soup is a pattern built around failed breakouts and liquidity sweeps at key support and resistance levels. It frames a reversal setup with defined conditions for bias, liquidity sweep behaviour, lower timeframe confirmation, and entry placement.

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Like any approach, its outcomes depend on context. The setup tends to work where range edges hold and breakouts fail. It tends to underperform where momentum carries through swept levels. Disciplined execution, careful risk management, and alignment with the broader market context remain the deciding factors.

Traders who want to apply the framework on live markets may open a forex trading account with FXOpen and trade with tight spreads from 0.0 pips and low commissions from $1.50.

FAQs

What Is ICT Turtle Soup in Trading?

ICT Turtle Soup is a method that exploits false breakouts in trading. It identifies potential reversals when the price briefly moves beyond a major support or resistance level, triggering stop-loss orders before reversing direction. This strategy aims to take advantage of these liquidity grabs by entering trades opposite to the initial breakout direction​.

What Are the Conditions for ICT Turtle Soup?

To identify the ICT Turtle Soup pattern, traders analyse higher timeframe trends to establish market bias. They then look for counter-trend moves and mark internal liquidity areas. The pattern is identified when the price taps these liquidity zones and reverses quickly, often leaving a small wick. This signals a liquidity grab and potential trade setup in the direction of the higher timeframe trend​.

How May Traders Use the ICT Turtle Soup Pattern?

According to theory, using the ICT Turtle Soup pattern involves several steps. First, traders establish a market bias based on higher timeframe analysis. Then, they look for liquidity grabs at marked internal liquidity areas, indicating false breakouts. The next step is to confirm the setup on a lower timeframe by observing a similar liquidity grab and structure break. Lastly, they are supposed to enter trades in the direction of the higher timeframe trend, placing stop losses just beyond the liquidity grab and targeting key liquidity levels for profit-taking​.

What Is a Turtle Soup Setup in Forex Markets?

A turtle soup setup in forex markets is a failed breakout pattern at a key swing level. Price briefly breaks a recent high or low and sweeps clustered stop-loss orders. It then reverses back inside the prior range. Traders typically position against the initial breakout once the sweep is confirmed.

What Confirms a Liquidity Sweep in ICT Trading?

A liquidity sweep is confirmed by specific wick and close behaviour. Price should extend beyond a marked swing point, then close back inside the prior range. The wick reaches past the level while the candle body stays inside. A close beyond the level without reversal suggests a genuine breakout instead.

Is Turtle Soup a Reversal or Continuation Pattern?

Turtle soup is classified as a reversal pattern, not a continuation pattern. It targets failed breakouts where price moves through a level and then returns inside the prior range. The setup positions against the initial breakout direction rather than with it. Continuation patterns take the direction of the breakout instead.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The US Commodity Futures Trading Commission has asked a federal court to vacate its $5 million settlement with crypto exchange Gemini, claiming that the agency’s enforcement action was based on flawed allegations.

Gemini settled with the CFTC and paid a $5 million fine in January 2025 in the final weeks of the Biden administration after the agency accused it of making false or misleading statements related to a Bitcoin futures contract.

The CFTC filed a joint motion with Gemini in a Manhattan court on Wednesday seeking to vacate the settlement, adding in a statement that it had reviewed the matter and concluded that the “complaint should not have been filed — and would not have been under current enforcement standards.”

The CFTC said the complaint, brought under the Biden administration, was “largely based on a whistleblower’s account known to be lacking in credibility.” 

“Accordingly, the CFTC determined that continuing enforcement of the consent order’s prospective provisions serves neither the CFTC’s mission nor the public interest,” it said.

Source: CFTC

The CFTC’s request adds to a string of crypto lawsuits and investigations that the agency and the Securities and Exchange Commission have abandoned under US President Donald Trump.

Gemini co-founders Tyler and Cameron Winklevoss each donated $1 million to Trump’s election campaign in 2024.

The CFTC’s motion comes after Trump’s former CFTC chair nominee, Brian Quintenz, in September shared on X messages from Gemini CEO Tyler Winklevoss, who asked if he would review the agency’s case against the company if he were made chair.

Trump later withdrew Quintenz’s nomination and instead backed Mike Selig, a former lawyer for crypto companies who has taken a supportive stance toward the crypto industry.

The CFTC’s request seeks to end ongoing obligations imposed on Gemini under the settlement, including an injunction barring it from making false or misleading statements to the agency. 

“Applying the remaining provisions — including injunctive relief — prospectively would not be equitable,” the agency said. It noted that Gemini has already paid a $5 million fine, but it was not clear if the agency would refund the penalty.

The case stemmed from allegations that Gemini made misleading statements in 2022 during the review of a Bitcoin futures contract, particularly regarding its auction volumes and liquidity. 

The CFTC said these claims were relevant to assessing risk and the contract’s approval. 

Related: CME Group to launch regulated Bitcoin volatility futures 

The CFTC’s complaint relied on allegations from a whistleblower in 2017, who claimed that Gemini inflated trading activity and volumes to distort user demand.

The agency argued in its latest filing that the whistleblower’s allegations were based on statements from Gemini’s former chief operating officer and a subordinate, who allegedly made threats against Cameron and Tyler Winklevoss, and was allegedly known to lie about material facts.

The CFTC also argued that Gemini was a victim of fraud, claiming that two customers exploited Gemini’s “preferential fee structures through a coordinated rebate-fraud scheme.”

It also alleged that the two customers admitted defrauding Gemini of $7.5 million through this scheme, but the past leadership “did nothing with those admissions.”

Cointelegraph contacted Gemini and the CFTC for comment.

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