Support is a price level where the price tends to stop falling and rebound upwards.
Reason: There is a large number of buyers who see the price as attractive to buy.
🧭 How to accurately determine the support area? (Practical Steps)
1. Using the chart:
Open a platform like TradingView and follow these steps:
🔹 Step 1: Choose an appropriate time frame
For day traders: Use 1 hour or 4 hours.
For investors or swing traders: Use daily or weekly.
🔹 Step 2: Monitor where the price rebounded previously
Identify areas where the price touched and then rebounded upwards once or more.
The more rebounds occur from the same level, the stronger the support becomes.
🔹 Step 3: Use assistance tools:
Horizontal line tool: To draw the support level.
Assistance Indicators:
RSI: If it's below 30 = Oversold → Support signal.
Fibonacci: Levels 0.618 or 0.5 are often support areas.
💡 Practical Example:
Imagine that the "ABC" coin has dropped to 1.00$ multiple times and then rebounded to 1.30$.
So 1.00$ = strong support.
If the price returns to 1.00$, it is a potential buying opportunity (considering candles and indicators).
💰 When to buy in the support area?
✅ Smart Entry Plan:
1. Don't buy directly at support, wait:
Appearance of a reversal candle (like: hammer or engulfing).
Increase in trading volume at support.
Confirmation from RSI or MACD.
2. Divide your capital:
Do not invest all your money at once.
Buy a portion at the first rebound.
Keep a portion for buying if the price drops slightly below the support (as support is not a precise line but an area).
⚠️ Important Tips:
Place a Stop Loss below the support area in anticipation of a break.
Don’t rely solely on support, but also monitor news, the overall market, and Bitcoin's movement.
Strong support is often in psychological areas like: 0.50 – 1.00 – 10.00 – 100.00