The Support Zone in cryptocurrencies — like in other financial markets — is a price level to which the currency typically declines, then rebounds upward due to increased demand from buyers.

Simplified Explanation:

When the price of a cryptocurrency (like Bitcoin) falls, traders pay attention to historical levels where the price has stopped declining.

At these levels, buying increases, creating a "Support Zone."

It is an area where sufficient buying pressure is expected to prevent the price from falling further.

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Practical Example:

If the price of Bitcoin falls from 70,000 to 60,000 and then starts rising several times from the 60,000 level, then 60,000 is considered a Support Zone.

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Characteristics of the Support Zone:

Characteristic Explanation

Historical Based on previous price movement data.

Psychological May reflect important round numbers (like 30,000 or 50,000).

Variable Support today may not be support tomorrow if it is broken.

Often drawn as a range And not an exact number (e.g., 58,500 to 60,000).

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Tools that help identify support:

1. Moving Averages

2. Fibonacci Retracements

3. Volume at Price

4. Previous Swing Lows

5. Candlestick Patterns