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Just been staring at the BTC chart and spotted something that's been bugging me. There's this dead zone between certain price levels where basically nobody's trading - volume just dries up completely. This matters more than people think.
Here's the thing about how price moves work that most traders miss. When someone sells at a level, even if they're in profit or loss, and then price rallies higher, they're watching. The moment price pulls back to where they exited, it triggers something psychological - they see it as a pullback, a chance to buy back in before the next leg up. So these old highs end up acting like support zones even though they were resistance before. It's kind of wild when you think about it.
In the current setup, there weren't many sellers on the way up, which means there probably aren't many buyers ready to catch a dump either. If BTC dips below certain levels, we could see some sharp downside action. The shorter timeframes are already flipping bearish, so that tracks.
Now about resistance - and this is where people usually get it wrong. Resistance isn't just about marking where the price struggled. Real resistance is where sellers outnumber buyers. It's the zone where selling pressure suddenly increased. Looking at the chart, that's clearly visible in the area I'm watching.
There's also this liquidity sweep situation that just happened. BTC swept some levels and now it's dropping, which could be a threat to the current upleg. Was that whole move just a trap to liquidate positions? Honestly, the market will tell us. If BTC closes multiple daily candles below that key level, we'll have our answer.
Weekend's looking pretty red to me. I'm watching for a pullback to specific zones, and if Bitcoin shows weakness there, well, lower levels are waiting. The real question is whether we're seeing 105k means a reversal pattern or just another shake before the next push. Once I'm ready to pull the trigger on a position, I'll share the setup. For now, it's observation mode.