How can traders use support and resistance levels to make profitable cryptocurrency trades?

1 answers

• Dec 18, 2021 · 3 years ago
  As a trader, you can use support and resistance levels to make profitable cryptocurrency trades. When the price of a cryptocurrency reaches a support level, it indicates that there is a strong demand for the asset at that price, which can potentially lead to a price increase. On the other hand, when the price reaches a resistance level, it indicates that there is a strong supply of the asset at that price, which can potentially lead to a price decrease. By identifying these levels, you can make informed decisions on when to buy or sell cryptocurrencies. However, it's important to note that support and resistance levels are not foolproof indicators and should be used in conjunction with other technical analysis tools and market trends for better accuracy.
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