📈 Understanding Support and Resistance
New to crypto trading? One of the most fundamental charting concepts you should know is support and resistance. Understanding support and resistance is crucial for reading crypto charts like a pro.
🔹 Support is a price level where demand tends to prevent the price from falling further. It’s like a floor—when the market approaches it, buyers step in, pushing the price up.
🔹 Resistance is the opposite—it’s like a ceiling. It's a level where selling pressure builds, causing prices to reverse downward.
These zones aren't exact prices, but areas where price action reacts repeatedly. For instance, if Bitcoin has bounced up several times around $58,000, that area becomes a strong support zone. If it struggles to break above $63,000, that’s resistance.
📈 Many traders use support and resistance to plan entries (buy near support) and exits (sell near resistance). Combine this with tools like RSI or volume to confirm your setup.
👀 Tip: Support can become resistance after a breakdown—and vice versa!
