The most used indicator when reading cryptocurrency charts: Support and resistance.
Support and resistance levels are key concepts for reading cryptocurrency price charts, and they are one of the most utilized indicators.
Markets fluctuate over time, so areas where prices pull back are called resistance, while rebounds from a downward movement are at support levels.
When prices repeatedly return to the same level without breaking above, resistance strengthens. Likewise, conversely, when prices repeatedly fall to the same level but do not break below, support strengthens.
When prices break through these zones, it is known as a breakout, which will then find the next level of support or resistance, whether below or above.
Knowing how to identify these support and resistance areas will help make a better-informed decision based on market trends and the proposed trading strategy.
