$BTC Looks like it's chopping for a while, use this time to brush up on your skills. Read about Support and Resistance 👉
Support:
Support levels are areas where the price has historically had difficulty falling below. They represent levels where buying interest is strong enough to counteract selling pressure, preventing the price from declining further. In crypto, support levels are often identified by previous lows in the price chart. When the price approaches a support level, traders may expect buying interest to increase, potentially leading to a bounce or reversal.
Resistance:
Resistance levels are areas where the price has historically struggled to move above. They represent levels where selling interest is strong enough to counteract buying pressure, preventing the price from rising further. In crypto, resistance levels are often identified by previous highs in the price chart.
When the price approaches a resistance level, traders may expect selling pressure to increase, potentially leading to a pullback or reversal.
Identifying support and resistance levels is crucial for traders and investors as they can be used to:
Determine entry and exit points for trades. Set stop-loss orders to limit potential losses. Assess the strength of a trend and anticipate potential price movements. Adjust trading strategies based on price reactions at these levels.
