Who are the resistance? - page 2

New comment
 
elettra fischer #:

It sounds like traders with a short-term focus or scalpers. They aim to profit from small price moves, so even a small gain from $69,000 to $70,000 is enough for them. Another possibility is institutional traders or whales, who might sell at resistance to push the price down and buy more at lower levels. They’re not focused on big profits from one trade but rather making small gains consistently.

I agree, scalpers may want to gain from the small movements.
 
8289190: If BTC/USD has support at $68,000 and resistance at $70,000, what type of group or person would keep dumping at $70,000 when they make very little profit from a buy at $69,000?

Good question! I’ve thought about this, and I don’t think there’s just one type of trader selling at resistance like $70,000.

Some possibilities:

  1. Short-term traders & scalpers – If they bought at $69,000, they’re happy with a small, quick profit. They’re not thinking long-term, just reacting to levels.
  2. Big players & liquidity providers – They’re not always trying to predict moves; sometimes, they just need to balance positions or provide liquidity.
  3. Whales & institutions – They play a different game. Some might sell into resistance to trigger stop-losses, shake out weak hands, and then buy back lower.
  4. Swing traders taking profits – Not everyone selling at $70,000 bought at $69,000. Some might have been in since $50,000 and are locking in gains.

Honestly, I think resistance is as much about market psychology as it is about numbers. If enough people believe $70K is a big level, it kind of becomes one. But when too many expect a rejection, that’s often when we see a breakout.

 

Thank you for all the answers. I have been trading 99% BTC/USD pair since Sept/2023 and 95% long trades. I started a daily profit/loss record dating back to Aug/2024.

My trading account is 20:1 margin offshore because I think Canada only allows 5:1 max. I try to keep between $15,000 and $30,000 in this account to cover large dips.

There are almost regular and predictable daily and weekly dips. Asia markets open 1st every day/week except for Muslim markets that open Sunday to Thursday local. I found a nice real-time site that shows who is open and when.  https://market24hclock.com/

Asia will normally sell BTC about one hour before their markets open each day and NYC does the same. My theory is they are getting cash to buy when the markets open. NYC is almost like clockwork 7:59 to 8:01 am local every morning is their dip. The biggest volume is NYC between 8am an 5pm local. There seem to be two more daily dips with NYC local time. 10am to noon and 1pm to almost 5pm. On Fridays it dips earlier so everyone can leave and get a good seat at their local bar. As I am writing this it is 7:45 am  NYC time and BTC/USD just floored at 86700; a dip from an 87800 high started by Asia when they opened about 12 hrs ago. In the last 1.5 hrs I have bought 8 positions between 87322 and 86764 all at 0.01 coin each. NYC will probably break from their normal, and buy at 8am. 4min... time to get a beer. I guessed right, from 7:59 to 8:11 they  bought it up from 86960 to a high of 87415. Since then it is staying flat at 87300. At 8:13 I sold 3 'uglies' for $1.65 total while they were still green. I have 5x 0.01 still open between 86763 and and 87021. At 8:21 it hit a high of 87516 then at 8:22 they sold it down to 87390. I just noticed gold hit 3400+ ATH 1 hour ago. About 7:30am NYC. BTC is flat to low at about 87200, NYSE opens in 45 min. I have noticed that NYSE tends to buy the dip that is normally created at 8am. I will see if that holds up. The biggest peaks are usually 9:30am to 10:30 am, that is where I normally sell off. I try to make at least $CAD100 a day. With each 0.01 position the profit goes up $CAD1.40 for every 100 BTC/USD goes up. To make my $100 with 5 positions I divide 100/5 = 20. 20/1.4 = 14.3. Bitcoin would need to go up 1430 for my profit to be $100. I usually try to have 9x 0.01 open. With that many then BTC would have to go up just over 800 from any dip I bought to make my $CAD100 daily. I sold off 2 more that were just in the green for $1.75 total, 3 x0.01 left. If it stays low I will buy in threes, up to 9x 0.01. It floored, 86790, at 9:09 and started climbing at 9:10. I sold some, bought some. 6x0.01 between 86763 and 87080. 10 min to NYSE open.... Volume is low. I use https://data.bitcoinity.org/markets/price_volume/1h/ it shows combined volume of all the big exchanges. A steep climb started at 9:22, 5 min to Charlie... 9:40 bulls are winning, peaked at 87580. I sold everything at 87500 to 87560. I need to wait for another dip now.

12
New comment