Bitcoin’s recent price movement gave me a textbook example of how important key levels are. I was tracking a long-term horizontal resistance on the daily chart, and BTC approached it with strong momentum. Many traders were expecting a clean breakout, but I stayed cautious. Instead of jumping in, I set alerts above and below the zone to see how price would react. As expected, price wicked above the resistance but quickly rejected, forming a long upper shadow. This rejection showed sellers were active. I waited for a pullback and then entered only after a confirmation candle near support. The move turned out strong. This trade reinforced a lesson I’ve learned repeatedly — always respect resistance zones, especially on higher timeframes. They’re where the real battles happen between buyers and sellers. Impulsive entries at those levels often lead to frustration. But waiting for reactions and confirmation gives you better entries and peace of mind. BTC is the king of fake-outs. Understanding its behavior around key levels will save you from many losses and sharpen your trading instincts.
