The method of using the support level in cryptocurrency trading is as follows:

In an upward trend, when the price of the currency is pulled back, if a weaker negative line appears in the K-line chart, especially when it is close to the support price, and the trading volume gradually shrinks, and then the positive line quickly surpasses the negative line, this indicates that the support level is effective and the price of the currency is expected to rise again.

However, if negative lines frequently appear during the pullback process in the upward trend, the short-selling force gradually increases. Even if the price of the currency rebounds slightly near the support line, due to insufficient takeover power, the price of the currency will eventually fall below the support line. This is called a market reversal, and investors should be vigilant.

When the price of the currency forms a consolidation trend near the support line, after a period of consolidation, if a long positive line appears, then this support line is still valid, which may indicate that the price of the currency will restart the upward trend. On the contrary, if a long negative line appears after consolidation and falls below the support line, investors may rush to flee in order to reduce losses, which may cause the price of the currency to continue to fall for a distance.

When the price trend of the currency breaks the support line from top to bottom, it usually means that the market will change from an upward trend to a downward trend. In a large upward trend, if an intermediate downward trend occurs and falls below its intermediate support line, it may mark the end of the large upward trend. In an intermediate upward trend, if the support line of the secondary downward trend is broken, the intermediate upward trend may have ended, and the coin price will continue to fall according to the original downward trend.

In addition, when the coin price touches the support line from above but fails to touch it or rebounds as soon as it touches it, if it is accompanied by a large trading volume, then you can buy in the next adjustment to obtain rebound profits. However, once the price falls below the support line from top to bottom and is accompanied by a large number of transactions, this may mean the beginning of another downward trend. At this time, you should sell the goods as soon as there is a slight retracement to avoid greater losses.

Finally, when the coin price touches the support line from above but has not fallen below it, and there is no trading volume, this may indicate that there is no possibility of a rebound, and investors should sell and leave the market as soon as possible.

The above is a detailed explanation of how to use the support level in coin trading. I hope it will be helpful to you! $BTC $ETH #BTC☀ #ETH🔥🔥🔥🔥