The recent drop in price shook the market and created fear among traders due to the strong liquidations.
However, the largest liquidity zone is between $105K and $108K.
This does not guarantee that the price will reach this zone, because liquidity alone does not set the price. Support and resistance levels are what really matter.
The market’s mood and behavior in the coming days will be crucial:
a) If sentiment stays pessimistic, the price may not even reach this zone.
b) If sentiment is neutral but turns negative when the price gets there, it will likely be a bear trap.
c) If sentiment is optimistic, the drop may continue or turn into more sideways movement.
