The drop shown in the chart above mainly has 3 reasons:

1. There is clear resistance above

That large red box in the upper right of the chart is, in essence, a resistance/supply zone.

Once the price moves up to there, it can’t rise further, so it’s easy to pull back.

You can understand it as:

Someone is selling above, and the buy-side order flow can’t push through, so it falls back.

2. After a short-term surge, profit-taking runs first

This is a 5-minute chart, and the fluctuations are fast.

After it has already climbed for a while, when it reaches a high level, short-term longs will first take profits, and that results in a retracement.

So this drop doesn’t necessarily mean the trend immediately flips bearish,

more like a “technical pullback after running into resistance”.

3. Below the long position, there are stop-loss levels, so the market is likely to go sweep them

This trade is a long position. The opening average price is about 73955.9,

and the stop-loss is roughly 73896.9.

In this kind of structure, the market really likes to probe downward first:

- Test support

- Sweep nearby stop-losses

- Liquidate leveraged long positions

So there’s another very common purpose behind the selloff:

Go hit that batch of stop-loss orders below.

One sentence summary:

It’s not “a drop for no reason,”

but “after the price rises into the resistance zone above, buying stalls; it pulls back technically first, and there’s also a possibility of sweeping the lower long stop-losses.”

In this chart, the most core point isn’t “why it drops,”

but:

When going long near a resistance zone, it’s inherently easy to get hit by a pullback.

The one thing beginners should remember most:

Chasing longs below resistance is the easiest way to get shaken out.#加密市场回升