What is support and resistance in cryptocurrency trading?

1 answers

• Nov 24, 2021 · 3 years ago
  Support and resistance are fundamental concepts in cryptocurrency trading. At BYDFi, we understand the importance of these levels in making informed trading decisions. Support is a price level where there is a strong demand for a cryptocurrency, preventing it from falling further. Resistance, on the other hand, is a price level where there is a strong supply of the cryptocurrency, preventing it from rising further. These levels can be identified by analyzing historical price data and chart patterns. Traders often use support and resistance levels to set stop-loss orders, determine entry and exit points, and manage risk. It's important to note that support and resistance levels are not fixed, but rather dynamic and can change over time as market conditions evolve. Therefore, it's crucial to stay updated and adapt your trading strategy accordingly.
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