Liquidity in the futures market is at its thinnest in the early hours, making it especially prone to sharp wicks. At that time, Asia is often asleep while Europe and the U.S. are nearing the latter part of the night. Market makers quote more cautiously, order book depth thins out, and a slightly larger order can sweep through several levels. Take BTC perpetuals on major exchanges, for example: between 2 and 5 a.m., order book depth is often 30% to 50% thinner than during the active U.S. session, slippage increases noticeably, and a wick of a point or two is not uncommon. In extreme cases, the move can leave an even longer wick. This price action looks almost identical to the 2019 pullback: after BTC surged to around $13,800 in late June 2019, it quickly retraced to around $9,700 in early July, with a maximum drawdown of nearly 30%. There were several sharp drops followed by quick recoveries, forming wick-like moves, and leveraged longs who chased the highs were liquidated en masse. In an uptrend, the real danger isn’t a drop—it’s getting wicked out after chasing a high. With 20x leverage, a 2% move against you means a loss of nearly 40% of your margin, making it easy to get liquidated in a wick. By the time the market rebounds, you’re already out of the trade. So scaling in on pullbacks is better than betting everything at the top: split your planned position into three or four tranches, enter at key support or retracement levels, limit leverage, and leave room to add, rather than going all in at once and betting on direction. If you see it differently, share your reasoning.