What is support and resistance?

Support and resistance are key indicators in the price behavior of assets like Bitcoin.

They are defined as trading barriers where the price tends to bounce or stagnate.

They can be psychological, based on volume, or on price highs and lows.

These levels help identify market trends.

What are resistance and support levels used for in Bitcoin trading?

They are used to create trading strategies based on historical price behavior.

They act as areas of higher liquidity, where a high volume of trades is expected.

Traders use these levels to place stop-loss and take-profit orders.

How to identify Bitcoin's price support and resistance?

Historical Price Review: Analyze charts in different time frames.

Pattern Identification: Look for bounce points and psychological levels.

Use of Technical Tools: Employ trend lines, moving averages, and other indicators.

Trading Volume: An increase in volume can confirm the importance of a level.

Continuous Verification: Adjust levels according to market behavior.

Types of support and resistance in Bitcoin

Static support and resistance: Based on concrete data and psychological levels.

Psychological resistance or support: Round numbers that impact market perception.

Areas of high supply and demand: Areas where there has been a significant imbalance between buyers and sellers.

Maximum and minimum price of Japanese candlesticks: Indicators of areas of trade concentration.

Trend line: Tools that help identify dynamic barriers in price.

Simple Moving Average: An indicator that constantly adjusts and helps calculate support and resistance levels.

end of class 😁 , God bless you always 😃