Taking the highs at $BTC means very little if we lose $85K immediately afterward.
Why?
Think about the trapped position we’ve just created with this move.
Fresh longs chased the pump up to the top of the range.
If we now lose the breakout pivot of the mid-zone as support, those buyers get trapped and have a reason to exit, adding selling pressure as we move back down toward the lows.
Therefore, $85K needs to hold so we can see a continuation above $87K.
We simply have more negative positioning above us than before.
Below $85K, I’d expect us to hunt liquidity around $83.5K toward the lower trendline.
We can still work with that, as long as we hold support and spend some time in range to allow liquidity to build on the buy-side for another attempt to the upside.
But if we lose the lower support too, then all this move will have done is trap another round of longs.
At that point, we’ll be looking for a move back below $80K.
Why?
Think about the trapped position we’ve just created with this move.
Fresh longs chased the pump up to the top of the range.
If we now lose the breakout pivot of the mid-zone as support, those buyers get trapped and have a reason to exit, adding selling pressure as we move back down toward the lows.
Therefore, $85K needs to hold so we can see a continuation above $87K.
We simply have more negative positioning above us than before.
Below $85K, I’d expect us to hunt liquidity around $83.5K toward the lower trendline.
We can still work with that, as long as we hold support and spend some time in range to allow liquidity to build on the buy-side for another attempt to the upside.
But if we lose the lower support too, then all this move will have done is trap another round of longs.
At that point, we’ll be looking for a move back below $80K.
