Dimas Adi
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What Are Support and Resistance Levels? Here's How to Use Them for Crypto Trading!
If you've started diving into the world of crypto trading, you've probably heard the terms support and resistance many times. But what do these two terms really mean? Why are they so important for traders, especially those who love to analyze charts every day?
Don't worry, in this article we will thoroughly discuss what support and resistance are, how to identify them, and of course — how to use them to make more accurate trading decisions.
1. First, Get to Know: What Are Support and Resistance?
Support Level
Support is like the lower wall of the price. Imagine you're throwing a ball to the floor — the ball will bounce up, right? Well, support is like the 'floor' that holds the price from dropping further. At this point, demand (buying pressure) starts to rise because many people think the price is 'cheap' and ready to buy. As a result, the price tends to rise again.
Don't worry, in this article we will thoroughly discuss what support and resistance are, how to identify them, and of course — how to use them to make more accurate trading decisions.
1. First, Get to Know: What Are Support and Resistance?
Support Level
Support is like the lower wall of the price. Imagine you're throwing a ball to the floor — the ball will bounce up, right? Well, support is like the 'floor' that holds the price from dropping further. At this point, demand (buying pressure) starts to rise because many people think the price is 'cheap' and ready to buy. As a result, the price tends to rise again.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
