BTC has been consolidating near the highs. When will it finally make a move?
Last Saturday, I posted a reminder that there was still one more opportunity for an upward move. Sure enough, price moved up on Monday. But is that move over? I don’t think so, because there’s a major source of temptation here: the equal highs around 87,300. Price has tested this level several times without breaking through. The resistance here isn’t actually that strong—the big players have set a trap, creating the impression that price can’t go any higher. The more it looks that way, the more dangerous it is—and the more likely price is to break upward. Why?
When price fails to break through a level several times, most people see it as strong resistance and place their stop-losses there. That means short sellers build up a lot of liquidity around that level. Once enough liquidity has accumulated, the big players will take it all in one move. This is especially true of closely spaced equal highs. Here, we can see that the three levels are only a little over $100 apart. Equal highs this close together can be swept with just a small push. So why haven’t they been taken out? Clearly, the market is waiting—waiting for more people to short and set their stops. Once there are enough of them, I believe price will sweep the equal highs at 87,300. In fact, most equal highs like these eventually get taken out; it’s very common in technical analysis. So I don’t think the market will drop immediately. It’ll likely linger here for a while, and only after the equal highs at 87,300 have been taken out might price turn lower. That’s why I think a sharp drop is coming soon—and before it does, price may well sweep those equal highs at 87,300.
Last Saturday, I posted a reminder that there was still one more opportunity for an upward move. Sure enough, price moved up on Monday. But is that move over? I don’t think so, because there’s a major source of temptation here: the equal highs around 87,300. Price has tested this level several times without breaking through. The resistance here isn’t actually that strong—the big players have set a trap, creating the impression that price can’t go any higher. The more it looks that way, the more dangerous it is—and the more likely price is to break upward. Why?
When price fails to break through a level several times, most people see it as strong resistance and place their stop-losses there. That means short sellers build up a lot of liquidity around that level. Once enough liquidity has accumulated, the big players will take it all in one move. This is especially true of closely spaced equal highs. Here, we can see that the three levels are only a little over $100 apart. Equal highs this close together can be swept with just a small push. So why haven’t they been taken out? Clearly, the market is waiting—waiting for more people to short and set their stops. Once there are enough of them, I believe price will sweep the equal highs at 87,300. In fact, most equal highs like these eventually get taken out; it’s very common in technical analysis. So I don’t think the market will drop immediately. It’ll likely linger here for a while, and only after the equal highs at 87,300 have been taken out might price turn lower. That’s why I think a sharp drop is coming soon—and before it does, price may well sweep those equal highs at 87,300.