Strong support and resistance levels in trading are key concepts used by traders to identify potential price points where the market may reverse or consolidate.
Support is a price level where a downtrend can pause due to a concentration of demand. When the price approaches this level, buyers tend to enter the market, which can prevent the price from falling further.
Resistance, on the other hand, is a price level where an uptrend can pause or reverse due to a concentration of supply. When the price approaches this level, sellers tend to enter the market, which can prevent the price from rising further.
To determine the strongest support and resistance levels, traders often look at historical price data, chart patterns, and technical indicators.
For Bitcoin (BTC), some strong support levels might be identified at previous lows, while resistance levels could be identified at previous highs. It’s essential to analyze recent price movements to pinpoint these levels accurately.