How does support and resistance levels affect the trading volume of digital currencies?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we've observed that support and resistance levels can have a notable effect on the trading volume of digital currencies. When the price of a digital currency approaches a support level, we often see an increase in trading volume as more traders enter the market. This can be attributed to the psychological factor of buyers feeling confident in buying at a support level. Similarly, when the price approaches a resistance level, we tend to see a decrease in trading volume as buyers become hesitant and sellers become more active. Understanding and analyzing support and resistance levels can be a valuable tool for traders looking to predict and capitalize on changes in trading volume.
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