CryptoURANUS Economics: Resistance & Support Levels: Defined in CryptoCurrency

CryptoCurrencies


Thursday, August 9, 2018

Resistance & Support Levels: Defined in CryptoCurrency

Resistance & Support Levels: Defined in CryptoCurrency


Resistance and support levels are defined as price points or ranges of an asset (stock, crypto, etc.) that are rarely passed over (resistance) or under (support).



A resistance level is a value that you can expect a cryptocurrency to stay above. A support level is a value that you can expect a cryptocurrency to stay below. Both levels can be found by looking at a price chart.


Both resistance and support levels often happen at or near even numbers like: $10, $50, $1,000, but it can happen at any price.

Resistance and support levels often occur because of supply and demand. A resistance level means that at that range, demand from buyers became weaker and/or the supply from sellers increased. A support level means that demand from buyers grew stronger and/or the supply from sellers weakened.

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