Strategies for Trading in the Cryptocurrency Market 🧐🧐 Let's first take a look at how resistance and support levels are formed.

It can be said that resistance levels are created by the collective strength of retail investors, who are quite united in this area. After many retail investors have been trapped at a peak, they become numb and indifferent.

🎯🎯 An interesting phenomenon is that, whether in the stock market or cryptocurrency market, after significant declines, it becomes less concerning; when there is a slight rise, they rush to sell, fearing profit withdrawal. The real approach is to cut losses in time and hold onto the trend, patiently waiting for rewards. After decades of hard work, making just a couple of points is a sheer waste of time!

❌ When the price returns to this level again, everyone rushes to break even and leave. People only know to cherish what they have lost; after waiting so long, that point has finally returned. How can one not be excited? Due to the immense selling pressure from breaking even, the resistance level is thus formed and exerts a suppressive force.

📢📢📢 So how is the support level formed?

Using the same reasoning, support levels usually provide support only within an upward channel. When many retail investors chase the last high point, and when the cryptocurrency price retraces to this level again, due to the market sentiment being bullish, the selling volume is minimal, thus forming an actual support. Prices often stop falling and rebound when they retrace to this point.

📈 A common technique used by some traders is the four-step process: penetrate, withdraw, press, and pull. However, under the mechanisms of the cryptocurrency market, some traders have reduced this way of playing; some only use it once or twice, and the cryptocurrency price has already hit the ceiling.

📉 Remember, there are no absolute support levels, and there are no absolute resistance levels. Support and resistance levels only work within a fixed trend; there are no resistance levels that cannot be broken, nor support levels that cannot be broken down. Therefore, simply drawing lines is of no use. The trend is the overall framework; without a framework, any indicator lacks judgment.