Look at chart 3 things marked
1. Zone with very low volume
2. Horizontal Resistance In Reddish Box
3. Horizontal line LQY Sweep
Let's explain each thing
Low volume is showing there are no much traders between $87.3K - $93K. Means when $BTC bounced from $83K to $94K there was not much sellers that sell and volume generate. One thing we have to discuss mainly here is when someone sell at a price doesn't matter in profit or loss and price go up more then it now when price drop to that point where he sold usually attract him and point him that it is just a pull back buy here and continue rally that you have missed. In this way these highs mostly act as support. Hope you have understand this phenomenon. Now according to current scenario there was not much sellers so now there was not much buyers too if price drops so we can see sharp downward move upto $87K, $89K if price dips below $92K. We are expecting this dump as shorter time already started turning bearish.
Mostly people mark Resistance area a high or low but it is not how it wroks. Resistance means where sellers are more then buyers. So Resistance will be the zone from where a sharp downward move started. A zone from where sellers increased suddenly. According to current chart reddish box is representing it.
LQY Line showing $BTC just swept liquidity and now dropping that is threat for BTC current leg up. Was BTC BTC recent leg up just a trap to sweep these liquidation ? I will not answer market will answer this if BTC drop below $87K and close multiple 1D candles below it.
In short words weekend is looking red and we can see a pull back upto $89K . If BTC show some strength there we can look for buying otherwise $87K $85K area is ready to welcome #Bitcoin. Once I will buy will inform you and share proper e.p, t.p and s.l
