How can trading support and resistance be applied in the cryptocurrency market?

1 answers

• Dec 17, 2021 · 3 years ago
  In the cryptocurrency market, support and resistance levels play a crucial role in technical analysis. Traders use these levels to identify potential areas of buying and selling pressure. When the price of a cryptocurrency approaches a support level, it indicates that there is a strong demand for the cryptocurrency at that price, which can act as a support and prevent the price from falling further. Conversely, when the price approaches a resistance level, it indicates that there is a strong supply of the cryptocurrency at that price, which can act as a resistance and prevent the price from rising further. By understanding these levels, traders can make better decisions on when to enter or exit a trade.
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