*What is Resistance Line? Explained with BTC 82,573 Example*
As marked on my chart, BTC has a strong resistance at 82,573.
*What is Resistance Line?*
A resistance line is a price level where selling pressure is so high that price fails to go above it. Sellers defend this level.
In my chart:
- Current Price: Trading at 81,570.18
- Resistance: At 82,573.06
- As you can see, whenever price went near 82,573, it got rejected and dropped to 80,809.25
*2 Scenarios:*
*1. Breakout Above (Bullish):*
If price closes above 82,573 with increased volume, resistance will break and become new support. This is bullish continuation.
*2. Rejection Below (Bearish):*
If price fails to break 82,573, selling pressure pushes price down. As happened in my chart - drop to 80,809.
*Trading Tip:*
Always confirm breakout with volume and closing price. SAR is at 81,013.67 below price, so bias is bullish for now, but breaking 82,573 is key.
Educational only, NFA.
$BTC #Bitcoin #ResistanceLine #TechnicalAnalysisPost #writetoearn #writetoearn
As marked on my chart, BTC has a strong resistance at 82,573.
*What is Resistance Line?*
A resistance line is a price level where selling pressure is so high that price fails to go above it. Sellers defend this level.
In my chart:
- Current Price: Trading at 81,570.18
- Resistance: At 82,573.06
- As you can see, whenever price went near 82,573, it got rejected and dropped to 80,809.25
*2 Scenarios:*
*1. Breakout Above (Bullish):*
If price closes above 82,573 with increased volume, resistance will break and become new support. This is bullish continuation.
*2. Rejection Below (Bearish):*
If price fails to break 82,573, selling pressure pushes price down. As happened in my chart - drop to 80,809.
*Trading Tip:*
Always confirm breakout with volume and closing price. SAR is at 81,013.67 below price, so bias is bullish for now, but breaking 82,573 is key.
Educational only, NFA.
$BTC #Bitcoin #ResistanceLine #TechnicalAnalysisPost #writetoearn #writetoearn