How does Investopedia define support and resistance in the context of cryptocurrency trading?

1 answers

• reyvliOct 07, 2023 · 2 years ago
  Support and resistance are important concepts in cryptocurrency trading, and Investopedia provides a clear definition of these terms. Support is a price level at which there is enough buying pressure to prevent the price from falling further. It acts as a support or floor for the price. Resistance, on the other hand, is a price level at which there is enough selling pressure to prevent the price from rising further. It acts as a resistance or ceiling for the price. These levels are determined based on historical price data and are used by traders to make informed decisions. By understanding support and resistance levels, traders can identify potential buying or selling opportunities and manage their risk effectively. Investopedia offers comprehensive resources on support and resistance in the context of cryptocurrency trading.
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