To those traders who used S&R as their main strategy they believe that the Bitcoin will rise up since it only touches the support but didn't break it. In many cases, there are fake bounce in the market, we thought that the price will go higher but it's just a manipulation and break the support. The bounce back of the price that we saw in the market is not the type of bounce back that I've been waiting for. I don't think if the market was ready to make a new high this time or we expect for lower price.
That's banks and big players who do liquidate all possible stop-losses. Usually retail traders put their SL at the end of the candlestick on the support area. Experienced traders don't enter like that; they wait for a signal for reversal. If it touches the support area, sometimes they wait for a breakout of the trend or a change of structure. If it happens, they are going to enter, and their stop-loss is below the last bearish candle below the support zone.
There's ups and downs on the current market which is sign of consolidation. Big players, or whales, are just clearing out retail traders we should be smart than them that is why sometimes they suggest putting your entry where people usually put their stop-loss because big players they manipulate them a bit to hit all possible liquidations, including stop-loss.
Manipulation is pretty common it happens daily in crypto that's why you don't overtrade. Always keep your stop-loss tight. If you enter where people put their stop-loss, then that's your counter solution for banks and big players, but I don't think it would be a good solution for this.
We are trading against other trader so we must think what they also think before we enter.
I am going to wait for breakouts and check for higher time frames. If it's oversold or overbought, that would be a signal, but I always wait for reversal patterns and breakouts for entry.