Bitcoin surged past 90,000 last night, then quickly fell. What exactly is behind this market movement? Let me break it down.

First, let's talk about why it can rise to 90,000 - it's actually very straightforward. First, market participants want to accumulate at this key integer level, and second, there is a serious accumulation of liquidation orders at the 90,000 hurdle. However, the market comes quickly and leaves just as fast, why is that?

90,000 is a clear technical resistance level, this is one. More importantly, although the price has risen, the trading volume has not followed, which is a shrinking breakout. The combination of shrinking rise + encountering resistance level naturally increases the probability of a decline. This is not a profound principle, just the most basic logic of supply and demand.

Of course, what I mean is a high probability, not certainty. Trading is like this - finding high probability events to do repeatedly, and the risks and rewards will naturally show over the long term. Instead of betting on those low probability events, it is better to fully understand the repetitive opportunities. The fall after a failed breakout with reduced volume often has a good rhythm, and this type of trading opportunity occurs quite frequently.

So next time you see a trend like this, you'll know how to operate.