THIBAUTCRYPTO
@THIBAUTCRYPTO
Dans le monde du trading depuis maintenant un bon bout de temps
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#BtcNewHolder Under the flickering glow of the screens, where the numbers dance like will-o'-the-wisps, Bitcoin, this colossus of promises and illusions, is wavering. Already, its brilliance is fading, and one can sense, in the folds of the market, a fatal slope. It is no longer the triumphant rise, but the implacable gravity that calls it.
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In the feverish agitation of the markets, where gold and currencies dance like mirages, a cry rises, almost inaudible, lost among rumors and doubts: $USUAL .
Like a jewel forgotten under the dust of hasty judgments, its brilliance seems tarnished. And yet, it is in this abyss, in this fold of time, that opportunity lies. For everything that falls, one day, rises.
"Buy," some say, with a look full of hope. For those who seize the moment when everything seems to collapse are often those who, tomorrow, will stand at the top.
So, while the world hesitates, while it trembles before uncertainty, one truth persists: USUAL, at its lowest, whispers to those who know how to hear. It is there that fortune is forged, in audacity and clairvoyance.
Like a jewel forgotten under the dust of hasty judgments, its brilliance seems tarnished. And yet, it is in this abyss, in this fold of time, that opportunity lies. For everything that falls, one day, rises.
"Buy," some say, with a look full of hope. For those who seize the moment when everything seems to collapse are often those who, tomorrow, will stand at the top.
So, while the world hesitates, while it trembles before uncertainty, one truth persists: USUAL, at its lowest, whispers to those who know how to hear. It is there that fortune is forged, in audacity and clairvoyance.
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Elon Musk, débunk...
In the hushed shadows of a studio where thoughts and controversies intersect, a man of dazzling fame, Elon Musk, spoke in a deep voice. His words, like dire prophecies, soared through the air like birds of ill omen.
"America," he said, "bears on its shoulders the burden of a titanic, crushing debt, like those mountains ready to collapse. Thirty-six trillion, a figure so vast that it seems to disappear into infinity, like a shoreless sea."
"America," he said, "bears on its shoulders the burden of a titanic, crushing debt, like those mountains ready to collapse. Thirty-six trillion, a figure so vast that it seems to disappear into infinity, like a shoreless sea."
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"USUAL: The extraordinary behind the ordinary"
In this vast theater that is the cryptosphere, where sparkling promises echo in languages that only the initiated can decipher, a discreet force advances, without noise, but with assurance: $USUAL
At first glance, it all seems ordinary. “Just another crypto?” skeptics will ask. But the ordinary, when shaped with rigor, becomes the foundation of revolutions. Consider this name, USUAL, so simple that it becomes insolent. It whispers in the ears of investors tired of garish promises: “It is not the brilliance of the moment that we seek, but the promise of a solid future.”
At first glance, it all seems ordinary. “Just another crypto?” skeptics will ask. But the ordinary, when shaped with rigor, becomes the foundation of revolutions. Consider this name, USUAL, so simple that it becomes insolent. It whispers in the ears of investors tired of garish promises: “It is not the brilliance of the moment that we seek, but the promise of a solid future.”
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Dogecoin: The Currency of the New Times
Under the clear digital firmament, where algorithms dance like elusive stars, rises a strange and laughing figure: the Dogecoin. Originally, a joke, a burst of laughter launched into the ether of cryptos. However, as the world embraces it, this token with a canine face has transformed into an icon, a symbol of light and carefree modernity.
Look at it: a Shiba Inu, an involuntary muse, enthroned like a mischievous god. The Doge is not just a coin; it is a philosophy. It ignores the pompous ways of austere cryptos and walks among us, carrying a simple idea: finance can be a game, a field of connivance where humor and community are worth more than digital gold.
On Binance, Dogecoin trading stretches like an irregular river. Sometimes, a wave of frenzy stirs the waves, when the winds of Elon blow from the high spheres of Twitter. Sometimes, calm returns, and the Doge slumbers, true to its essence: unpredictable, but always true to its candid brilliance.
So, Dogecoin, miracle or masquerade? It doesn't matter. Like the poets of old, it only asks to be seen, shared, celebrated. And perhaps that is the real treasure: this rare ability to bring hearts together under a common sign, that of the smile.
Under the clear digital firmament, where algorithms dance like elusive stars, rises a strange and laughing figure: the Dogecoin. Originally, a joke, a burst of laughter launched into the ether of cryptos. However, as the world embraces it, this token with a canine face has transformed into an icon, a symbol of light and carefree modernity.
Look at it: a Shiba Inu, an involuntary muse, enthroned like a mischievous god. The Doge is not just a coin; it is a philosophy. It ignores the pompous ways of austere cryptos and walks among us, carrying a simple idea: finance can be a game, a field of connivance where humor and community are worth more than digital gold.
On Binance, Dogecoin trading stretches like an irregular river. Sometimes, a wave of frenzy stirs the waves, when the winds of Elon blow from the high spheres of Twitter. Sometimes, calm returns, and the Doge slumbers, true to its essence: unpredictable, but always true to its candid brilliance.
So, Dogecoin, miracle or masquerade? It doesn't matter. Like the poets of old, it only asks to be seen, shared, celebrated. And perhaps that is the real treasure: this rare ability to bring hearts together under a common sign, that of the smile.
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Bitcoin: A Millennial Invention?
What if Bitcoin is not a modern invention but a much older concept? This surprising image, discovered recently, raises fascinating questions about the origins of decentralized monetary systems.
🔍 An intriguing ancient fresco
Dated to 1600 BC, it appears to depict artisans carving a symbol that looks suspiciously like Bitcoin. These carvings, along with parchments and technological artifacts, would indicate an advanced understanding similar to our current blockchain.
🔍 An intriguing ancient fresco
Dated to 1600 BC, it appears to depict artisans carving a symbol that looks suspiciously like Bitcoin. These carvings, along with parchments and technological artifacts, would indicate an advanced understanding similar to our current blockchain.
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Ethereum and the digital ant
In a virtual network, a young Ethereum,
All fresh, all lively, was looking for its firmament.
“See my chain,” he said to the coins of yesteryear,
I'm fast, safe, and full of changes!”
The old currencies, with a somewhat weary look,
They replied: “Very nice, but what do you have there?”
A complex code, a world to build?
And do you think, young fool, that this will be enough?
Ethereum smiled and without further ado,
Throw his blocks, invite to build.
Soon, contracts, wonderful projects,
All fresh, all lively, was looking for its firmament.
“See my chain,” he said to the coins of yesteryear,
I'm fast, safe, and full of changes!”
The old currencies, with a somewhat weary look,
They replied: “Very nice, but what do you have there?”
A complex code, a world to build?
And do you think, young fool, that this will be enough?
Ethereum smiled and without further ado,
Throw his blocks, invite to build.
Soon, contracts, wonderful projects,
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🎠 Traders and their crazy adventures 💰
In a kingdom far, far away, there lived strange creatures: traders. They spent their days in front of big glowing machines, clicking frantically, convinced that they could predict the future better than the Fairy Godmother herself.
🌪️ “Look at this!” one would say, his eyes glued to a zigzagging chart. “It’s definitely going up!” Then, BAM! The market would fall like Snow White’s apple.
Oh, sure, they were convinced they were heroes, defying the market dragon. But often, they ended up closer to the donkey than Prince Charming. And when they lost, it was someone else’s fault: “It’s not me, it’s the Wall Street Witch!”
Moral? Don't let traders sell you their magic potions. The real magic is in patience, caution and a little bit of self-confidence. ✨
In a kingdom far, far away, there lived strange creatures: traders. They spent their days in front of big glowing machines, clicking frantically, convinced that they could predict the future better than the Fairy Godmother herself.
🌪️ “Look at this!” one would say, his eyes glued to a zigzagging chart. “It’s definitely going up!” Then, BAM! The market would fall like Snow White’s apple.
Oh, sure, they were convinced they were heroes, defying the market dragon. But often, they ended up closer to the donkey than Prince Charming. And when they lost, it was someone else’s fault: “It’s not me, it’s the Wall Street Witch!”
Moral? Don't let traders sell you their magic potions. The real magic is in patience, caution and a little bit of self-confidence. ✨
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⚽ Bitcoin is like football 🌍
To succeed, you have to believe in it, always. At first, no one believed in Bitcoin, just as no one believed that a little guy from Rosario would play at the Camp Nou. But with work, patience and passion, everything becomes possible.
Bitcoin is not just a bet, it is a project, a vision. As on the field, you have to know how to be patient, wait for the opportunity and make the right move at the right time.
🏆 Those who dare, those who work hard, end up winning.
Believe in your dreams, as I believed in mine. With Bitcoin, maybe you will score the goal of your life.
#Messi #Crypto
To succeed, you have to believe in it, always. At first, no one believed in Bitcoin, just as no one believed that a little guy from Rosario would play at the Camp Nou. But with work, patience and passion, everything becomes possible.
Bitcoin is not just a bet, it is a project, a vision. As on the field, you have to know how to be patient, wait for the opportunity and make the right move at the right time.
🏆 Those who dare, those who work hard, end up winning.
Believe in your dreams, as I believed in mine. With Bitcoin, maybe you will score the goal of your life.
#Messi #Crypto
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🎸 $USUAL , it's not for sheep 🐑
Hey buddy, you're there watching, hesitating, telling yourself that it's going up or down, that it's for the others, the smart ones, the guys who have understood everything. But you're wrong. Seriously wrong.
Usual is not just a line on a screen, it's a cry. Something that says: "I too can change the game." No need to be born with a silver spoon in your beak. Just dare, open your eyes and not stay there like a lamppost.
💥 So what? Are you coming with us or are you going to stay there strumming your guitar?
Because the train only comes once, and if you miss it, you won't have to whine. Usual is not for the faint-hearted, it's for those who know that one day, you have to jump into the void to touch the stars.
🎶 Come on, don't be shy, adventure awaits you. 🎶
Hey buddy, you're there watching, hesitating, telling yourself that it's going up or down, that it's for the others, the smart ones, the guys who have understood everything. But you're wrong. Seriously wrong.
Usual is not just a line on a screen, it's a cry. Something that says: "I too can change the game." No need to be born with a silver spoon in your beak. Just dare, open your eyes and not stay there like a lamppost.
💥 So what? Are you coming with us or are you going to stay there strumming your guitar?
Because the train only comes once, and if you miss it, you won't have to whine. Usual is not for the faint-hearted, it's for those who know that one day, you have to jump into the void to touch the stars.
🎶 Come on, don't be shy, adventure awaits you. 🎶
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Bitcoin: A revolution born in the shadows
My dear friends, let’s dive together into the fascinating epic of an invention that has shaken up our times: Bitcoin. It’s 2008, in the midst of a global economic crisis. In this troubled context, a certain Satoshi Nakamoto, a mysterious and anonymous figure, unveils a document that would mark history: the famous Bitcoin whitepaper.
🔐 An ideal of freedom
With a bold ambition, Satoshi imagines a currency freed from traditional institutions, based on the trust of individuals and secured by blockchain technology. A visionary, almost utopian idea, which nevertheless will find its followers and become a global phenomenon.
🔐 An ideal of freedom
With a bold ambition, Satoshi imagines a currency freed from traditional institutions, based on the trust of individuals and secured by blockchain technology. A visionary, almost utopian idea, which nevertheless will find its followers and become a global phenomenon.
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ATA: the intoxication of the moment
Like a torrent surging from the mountains, $ATA rushed forward, sweeping everything away in its path, leaving in its wake the glow of a +100% which, like a will-o'-the-wisp, fascinates and dazzles.
But make no mistake, oh travelers of the markets. This dazzling ascent, although it captivates the eye, is perhaps only a prelude to a more subtle dance, where each step must be measured, each breath calculated.
Great movements, like summer storms, are often followed by a deceptive calm. And already, some are growing impatient, others are wondering: Is this the beginning of a new era or the fleeting brilliance of a shooting star?
But make no mistake, oh travelers of the markets. This dazzling ascent, although it captivates the eye, is perhaps only a prelude to a more subtle dance, where each step must be measured, each breath calculated.
Great movements, like summer storms, are often followed by a deceptive calm. And already, some are growing impatient, others are wondering: Is this the beginning of a new era or the fleeting brilliance of a shooting star?
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🌟 The discreet glow of $USUAL 🌟
Like the soft morning light brushing the treetops, Usual rises, slowly but surely, towards the summits. There is no movement more inescapable than that of the ascension of a value that, in its essence, carries the promise of a bright future.
Don't you hear, deep in your mind, this conviction whispering: "It must rise. It will rise."
Let yourself be guided by the clear and implacable logic of well-thought-out things. Doubts, like fog, dissipate when clarity triumphs.
✨ Usual: hope that becomes reality. ✨
Like the soft morning light brushing the treetops, Usual rises, slowly but surely, towards the summits. There is no movement more inescapable than that of the ascension of a value that, in its essence, carries the promise of a bright future.
Don't you hear, deep in your mind, this conviction whispering: "It must rise. It will rise."
Let yourself be guided by the clear and implacable logic of well-thought-out things. Doubts, like fog, dissipate when clarity triumphs.
✨ Usual: hope that becomes reality. ✨
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Traders and their absurd ballet
In the pale light of their screens, they move, these strange beings in search of ephemeral riches. Their faces, tense with greed, contort at the slightest movement of the numbers, these wavering curves that they take for promises of the future. They breathe only in fits and starts, suspended in the unstable breath of the markets, like an impatient horse held back by a bridle that is too short.
In the midst of this digital tide, some, like modern prophets, whisper their certainties. "Buy here, sell there," they say, pointing to graphs saturated with bright colors. But one can guess, behind their learned calculations, a feverish anxiety, that of the gambler who knows that the wheel can stop at any moment.
In the midst of this digital tide, some, like modern prophets, whisper their certainties. "Buy here, sell there," they say, pointing to graphs saturated with bright colors. But one can guess, behind their learned calculations, a feverish anxiety, that of the gambler who knows that the wheel can stop at any moment.
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🌟 $BTC : a revolution or an illusion? 🌟
🔥 "Purchase orders are clear, doubts are useless." 🔥
In 2009, a mysterious character (or group) called Satoshi Nakamoto launched a revolutionary idea: a free, decentralized, transparent currency, accessible to all.
Today, Bitcoin, nicknamed "digital gold", still challenges financial institutions, fuels debates, and... turns heads. 📈⚡
But you, yes YOU:
👉 Do you believe in the infinite potential of Bitcoin? 🌌
👉 Do you think it will eventually collapse, victim of its limits and criticism? 🌀
🔑 One thing is certain: Bitcoin is not just a simple currency. It’s a movement, a symbol, and sometimes even an obsession. So, where do you stand in this adventure?
💬 Share your opinion in the comments: revolution or illusion? And if you HODL, how long do you plan to hold out? ⏳
#Crypto #Investissement #BinanceSquare
🔥 "Purchase orders are clear, doubts are useless." 🔥
In 2009, a mysterious character (or group) called Satoshi Nakamoto launched a revolutionary idea: a free, decentralized, transparent currency, accessible to all.
Today, Bitcoin, nicknamed "digital gold", still challenges financial institutions, fuels debates, and... turns heads. 📈⚡
But you, yes YOU:
👉 Do you believe in the infinite potential of Bitcoin? 🌌
👉 Do you think it will eventually collapse, victim of its limits and criticism? 🌀
🔑 One thing is certain: Bitcoin is not just a simple currency. It’s a movement, a symbol, and sometimes even an obsession. So, where do you stand in this adventure?
💬 Share your opinion in the comments: revolution or illusion? And if you HODL, how long do you plan to hold out? ⏳
#Crypto #Investissement #BinanceSquare
Révolution
79%
Illusion
21%
28 votes • Voting closed
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📈 Quick analysis of the token $USUAL :
➡️ Support: $1.00
➡️ Resistance: $1.50
The price is currently moving between these two key levels.
🔵 Strategy: Buy near the support to aim for a rebound towards the resistance.
🔴 Warning: In the event of a break, a new movement could be triggered (upwards or downwards).
📊 Buy orders are clear, doubts are useless. 💪
#Trading #Investissement #AnalyseTechnique
➡️ Support: $1.00
➡️ Resistance: $1.50
The price is currently moving between these two key levels.
🔵 Strategy: Buy near the support to aim for a rebound towards the resistance.
🔴 Warning: In the event of a break, a new movement could be triggered (upwards or downwards).
📊 Buy orders are clear, doubts are useless. 💪
#Trading #Investissement #AnalyseTechnique
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downtrend for PENGU unfortunately not used for hold but not bad for short term trading
#PENGU
I trusted this project when it came out, I bought at around 0.037 and 0.038 as the prices were at the time, I invested 100 dollars, now we are getting back on our feet around 92-93 dollars, I still haven't recovered my investment, and in fact when I got to 100 dollars I'm not going to retire without profits, I think it's a currency with potential and very useful projects in the world we live in. And I will keep it because I think it will continue to rise, with this I want to encourage people to join the project, since the price is still lower than what people like me paid. You are not late.
I trusted this project when it came out, I bought at around 0.037 and 0.038 as the prices were at the time, I invested 100 dollars, now we are getting back on our feet around 92-93 dollars, I still haven't recovered my investment, and in fact when I got to 100 dollars I'm not going to retire without profits, I think it's a currency with potential and very useful projects in the world we live in. And I will keep it because I think it will continue to rise, with this I want to encourage people to join the project, since the price is still lower than what people like me paid. You are not late.
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🚨 $USUAL +16% !!! 🚨
The revolution is underway. Those who believed from the beginning are starting to reap the benefits. 🌟 This is just the beginning, the potential is huge. If you're not in it yet, think fast... the rocket is taking off. 🚀 #Crypto #USUAL #ToTheMoon
The revolution is underway. Those who believed from the beginning are starting to reap the benefits. 🌟 This is just the beginning, the potential is huge. If you're not in it yet, think fast... the rocket is taking off. 🚀 #Crypto #USUAL #ToTheMoon
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Great article
Crypto PM
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How to Find Support and Resistance Levels in Crypto Trading
Key Takeaways
A support level is the price point at which an asset is expected to experience significant buying pressure; hence, it fails to break below.
A resistance level is the price point at which an asset is expected to experience significant selling pressure, hence failing to break above.
Round numbers, moving averages, trendlines, pivot levels, and historical data are the common indicators for finding support and resistance levels.
Stops and limits, pending orders, and corrective structures are the main support and resistance strategies to execute key price points better.
Technical analysis is a key aspect of analyzing the market behavior of cryptocurrencies. Out of all the available market indicators, price is the only leading indicator. The rest are classified as price derivatives, hence, are lagging indicators. Now that price is the only leading indicator in the market, how can you use it to make informed investment decisions in crypto trading? This is where technical analysis comes in.
Although technical analysis involves all sorts of indicators, it's primarily observing price movement to establish trends and make wise investment decisions. Moreover, out of all the price-based technical analysis methods, the principle of support and resistance is among the most essential and popular techniques. It can help you gain more insights into the strength of a price trend.
This guide comprehensively defines support and resistance levels, explains how to use round numbers, moving averages, trendlines, pivot levels, and historical data to find support and resistance levels, and provides support and resistance strategies.
What is a Support Level?
In crypto trading, support is the price level at which an asset is expected to experience significant buying pressure. In other words, a region where a bearish trend is thought to experience temporary resistance or total reversal. When an asset's price falls to this level, it is often met with many buyers interested in purchasing it, resulting in a reversal of the downtrend and a subsequent increase in price.
You can use support levels to identify potential entry points for buying an asset. For instance, if you want to buy a particular investment, you can enter the trade when the asset's price reaches a support level. It indicates a potential reversal of the downtrend and a good opportunity to buy at a lower price.
Several factors can contribute to the establishment of a support level. One of the most important is market sentiment. If many traders and investors believe that a particular asset is undervalued and should be trading at a higher price, they may be more likely to buy it when the price falls to a certain point, creating a support level.
Another factor that can contribute to the establishment of a support level is technical analysis. Traders often use technical indicators and chart patterns, such as round numbers, moving averages, trendlines, pivot levels, and historical data, to identify potential support and resistance levels. For example, you can search for zones where the price has previously bounced off multiple times, indicating that it is a strong support level.
What is a Resistance Level?
Contrary to support, a resistance level is the price point at which an asset is expected to experience significant selling pressure. It's a zone where a bullish trend is thought to experience temporary resistance or total reversal. When an asset's price reaches this level, it is often met with many sellers interested in selling it, resulting in a reversal of the uptrend and a subsequent price decline.
You can leverage resistance levels to spot potential exit points for selling an asset. If you're holding a particular asset, you can aim to sell it when the price reaches a resistance level. This indicates a potential reversal of the uptrend and a good opportunity to sell at a higher price.
It's important to note that support and resistance levels are unreliable indicators of future price movements. Just because an asset has bounced off a certain price level in the past does not necessarily mean it will do so again. These levels can also be broken if there is a significant shift in market sentiment or other factors that influence crypto markets.
There are five common indicators for finding the support and resistance levels of an asset:
Round Numbers
Round numbers are key psychological price levels often ending in 0, such as $10,000 or $12.50. Humans often think in rounded numbers, which is also true with financial markets. Since it's easier to visualize round numbers, most traders buy and sell assets when the prices hit round numbers. For instance, if Bitcoin (BTC) rallies from $27000 to $28800, the next key resistance level might be between $27500
To use round numbers to detect support and resistance levels, you first need to identify the key round numbers for the cryptocurrency you're trading. These differ for different assets, depending on their price history and volatility.
Once you've identified the key round numbers, you can look at the price chart for the asset and see where it has previously bounced off or broken through. For example, if BTC has previously bounced off at the $22,500 level severally, you can consider it as a strong support level.
Similarly, if the price of BTC has repeatedly failed to break through a round number like $28,000, you can consider that a strong resistance level.
Moving Averages
Moving averages is a popular technical indicator you can use to identify trends and potential support and resistance levels in financial markets. A moving average is an average price of an asset over a set period that is constantly updated as new data becomes available. There are two main types of moving averages: the simple moving average (SMA) and the exponential moving average (EMA).
You can calculate the SMA by taking the average price of an asset over a specific period, such as the past 50 days, and plotting it on the price chart as a line. On the other hand, the EMA places more emphasis on recent price data. You can calculate it using the SMA formula but using the most current prices. This means that the EMA can be more responsive to changes in the market than the SMA.
To use moving averages to identify support and resistance levels, you should look for regions where the asset's price has previously bounced off a moving average. For example, if the price of a cryptocurrency has repeatedly bounced off the 50-day SMA, you might consider it a strong level of support. Similarly, if the asset's price has repeatedly failed to break through the 200-day EMA, you might consider it a strong resistance level.
Trendlines
Trendlines are easily recognizable diagonal lines you draw on price charts to link price actions and illustrate uptrends and downtrends. Trendlines can be a useful tool for identifying potential support and resistance levels in crypto trading. Follow these steps to use trendlines effectively:
Step 1: Identify a Trend
The first step is to identify a trend in the asset price you are trading. If the line climb upwards, the trend is considered bullish. If it sink downwards, the trend is considered bearish.
Step 2: Draw the Trendline
Once you have identified the trend, draw a line that connects the lows in an uptrend or the highs in a downtrend. This line will serve as your trendline.
Step 3: Look for Support and Resistance Levels
The trendline can act as a support or resistance level depending on the direction of the trend. In an uptrend, the trendline is a support level; in a downtrend, it is a resistance level. Look for areas where the price touches or crosses the trendline. These are the potential support or resistance levels.
Pivot Levels
Pivot points are a widely used technical analysis tool to determine potential support and resistance levels. You calculate them based on the previous day's high, low, and closing prices. Here are the steps to use pivot levels as an indicator to find support and resistance levels in trading:
Calculate Pivot Points
Pivot points are calculated based on the previous day's high, low, and close prices. There are several ways to calculate pivot points, but the most common method is the Standard Pivot Point Formula (SPPF), which is:
Pivot Point (PP) = (High + Low + Close) / 3
Find the Support and Resistance Levels
Once you have calculated the pivot point, you can find the support and resistance levels using the following formulas:
Resistance level 1 (R1) = (2 x PP) - Low
Resistance level 2 (R2) = PP + (High - Low)
Resistance level 3 (R3) = High + 2 x (PP - Low).
Support level 1 (S1) = (2 x PP) - High
Support level 2 (S2) = PP - (High - Low)
Support level 3 (S3) = Low - 2 x (High - PP)
Look for Potential Levels
The support and resistance levels can act as potential levels for entering or exiting trades. If the price approaches a resistance level, it may be a good time to sell the asset or place a short position. Conversely, if the price approaches a support level, it may be a good time to buy the cryptocurrency or enter a long position.
Historical Data
Historical data in cryptocurrency refers to the record of past price and volume movements of a particular crypto asset. This data is collected and stored in blockchain data aggregator platforms, allowing traders, investors, and analysts to study the behavior of the cryptocurrency over time. Here are some steps you can take to use historical data to identify support and resistance levels:
Collect Historical Price Data
To find support and resistance levels, you must collect historical price data for the cryptocurrency you are interested in trading. CoinGecko is the world's leading independent blockchain data aggregator platform tracking over 11,000 cryptocurrencies across 600+ exchanges.
Plot the Data on a Chart
Once you have collected the historical price data, you can plot it on a chart to visualize the price movements over time. You can use a candlestick chart, line chart, or another type of chart to display the data.
Identify Key Price Levels
Look for areas on the chart where the price has repeatedly bounced off or struggled to move past. These levels are known as support and resistance levels, respectively.
Draw Lines to Connect the Levels
Once you have identified the key support and resistance levels, you can draw horizontal lines to connect them on the chart. This will help you visualize the price range which the asset has been trading within.
Use the Levels to Inform Your Trades
You can use the support and resistance levels to enrich your trading decisions. For example, consider selling or shorting the asset if the cryptocurrency's price is approaching a resistance level. Conversely, if the price is approaching a support level, consider buying or going long on the asset.
It's important to note that support and resistance levels are not exact price points but rather price ranges where buying or selling pressure has been historically significant. Additionally, historical support and resistance levels may not hold up in the future, so it's important to combine them with other indicators in your trading analysis and rely on something other than them.
Support and Resistance Strategies
Support and resistance strategies refer to using key levels on a price chart where buying and selling pressure is concentrated. You can use these levels to make informed investment decisions. Below are three support and resistance strategies that will help you better execute your trades:
Stops and Limits
Stops and limits are important risk management tools in trading to help traders manage potential losses and profits. A stop order is a type of order that automatically closes a trade when the market price reaches a specified level. On the other hand, a limit order is an order to buy or sell an asset at a set price or better. This strategy will help you to better manage your profits and losses after identifying support and resistance levels.
Pending Orders
Pending orders are orders placed to buy or sell an asset at a specified price. Traders use these orders to enter or exit a trade when the price reaches a specific level. You can use them to enter a trade when the price breaks through a resistance level or exit a trade when it reaches a pre-determined profit target.
Corrective Structures
Collective structures are price patterns that occur during price corrections or market retracements. These structures are used by traders to identify potential areas of support or resistance and to make decisions about when to enter or exit trades.
Corrective structures can be simple, such as a basic pullback, or more complex, such as a double or triple zigzag correction. You can use them to identify potential support or resistance areas and make informed trading decisions.
Conclusion
Support and resistance levels act as a foundation for technical analysis; hence, you should master them early enough in your trading journey. A support level is the price point where the price fails to break below, while a resistance level is where the price fails to break above regularly. Confirming potential support and resistance levels with multiple technical indicators, such as moving averages, round numbers, trendlines, pivot levels, and historical data will help to increase the accuracy of your analysis.
#Binance #crypto2023 #BTC #BNB #dyor
A support level is the price point at which an asset is expected to experience significant buying pressure; hence, it fails to break below.
A resistance level is the price point at which an asset is expected to experience significant selling pressure, hence failing to break above.
Round numbers, moving averages, trendlines, pivot levels, and historical data are the common indicators for finding support and resistance levels.
Stops and limits, pending orders, and corrective structures are the main support and resistance strategies to execute key price points better.
Technical analysis is a key aspect of analyzing the market behavior of cryptocurrencies. Out of all the available market indicators, price is the only leading indicator. The rest are classified as price derivatives, hence, are lagging indicators. Now that price is the only leading indicator in the market, how can you use it to make informed investment decisions in crypto trading? This is where technical analysis comes in.
Although technical analysis involves all sorts of indicators, it's primarily observing price movement to establish trends and make wise investment decisions. Moreover, out of all the price-based technical analysis methods, the principle of support and resistance is among the most essential and popular techniques. It can help you gain more insights into the strength of a price trend.
This guide comprehensively defines support and resistance levels, explains how to use round numbers, moving averages, trendlines, pivot levels, and historical data to find support and resistance levels, and provides support and resistance strategies.
What is a Support Level?
In crypto trading, support is the price level at which an asset is expected to experience significant buying pressure. In other words, a region where a bearish trend is thought to experience temporary resistance or total reversal. When an asset's price falls to this level, it is often met with many buyers interested in purchasing it, resulting in a reversal of the downtrend and a subsequent increase in price.
You can use support levels to identify potential entry points for buying an asset. For instance, if you want to buy a particular investment, you can enter the trade when the asset's price reaches a support level. It indicates a potential reversal of the downtrend and a good opportunity to buy at a lower price.
Several factors can contribute to the establishment of a support level. One of the most important is market sentiment. If many traders and investors believe that a particular asset is undervalued and should be trading at a higher price, they may be more likely to buy it when the price falls to a certain point, creating a support level.
Another factor that can contribute to the establishment of a support level is technical analysis. Traders often use technical indicators and chart patterns, such as round numbers, moving averages, trendlines, pivot levels, and historical data, to identify potential support and resistance levels. For example, you can search for zones where the price has previously bounced off multiple times, indicating that it is a strong support level.
What is a Resistance Level?
Contrary to support, a resistance level is the price point at which an asset is expected to experience significant selling pressure. It's a zone where a bullish trend is thought to experience temporary resistance or total reversal. When an asset's price reaches this level, it is often met with many sellers interested in selling it, resulting in a reversal of the uptrend and a subsequent price decline.
You can leverage resistance levels to spot potential exit points for selling an asset. If you're holding a particular asset, you can aim to sell it when the price reaches a resistance level. This indicates a potential reversal of the uptrend and a good opportunity to sell at a higher price.
It's important to note that support and resistance levels are unreliable indicators of future price movements. Just because an asset has bounced off a certain price level in the past does not necessarily mean it will do so again. These levels can also be broken if there is a significant shift in market sentiment or other factors that influence crypto markets.
There are five common indicators for finding the support and resistance levels of an asset:
Round Numbers
Round numbers are key psychological price levels often ending in 0, such as $10,000 or $12.50. Humans often think in rounded numbers, which is also true with financial markets. Since it's easier to visualize round numbers, most traders buy and sell assets when the prices hit round numbers. For instance, if Bitcoin (BTC) rallies from $27000 to $28800, the next key resistance level might be between $27500
To use round numbers to detect support and resistance levels, you first need to identify the key round numbers for the cryptocurrency you're trading. These differ for different assets, depending on their price history and volatility.
Once you've identified the key round numbers, you can look at the price chart for the asset and see where it has previously bounced off or broken through. For example, if BTC has previously bounced off at the $22,500 level severally, you can consider it as a strong support level.
Similarly, if the price of BTC has repeatedly failed to break through a round number like $28,000, you can consider that a strong resistance level.
Moving Averages
Moving averages is a popular technical indicator you can use to identify trends and potential support and resistance levels in financial markets. A moving average is an average price of an asset over a set period that is constantly updated as new data becomes available. There are two main types of moving averages: the simple moving average (SMA) and the exponential moving average (EMA).
You can calculate the SMA by taking the average price of an asset over a specific period, such as the past 50 days, and plotting it on the price chart as a line. On the other hand, the EMA places more emphasis on recent price data. You can calculate it using the SMA formula but using the most current prices. This means that the EMA can be more responsive to changes in the market than the SMA.
To use moving averages to identify support and resistance levels, you should look for regions where the asset's price has previously bounced off a moving average. For example, if the price of a cryptocurrency has repeatedly bounced off the 50-day SMA, you might consider it a strong level of support. Similarly, if the asset's price has repeatedly failed to break through the 200-day EMA, you might consider it a strong resistance level.
Trendlines
Trendlines are easily recognizable diagonal lines you draw on price charts to link price actions and illustrate uptrends and downtrends. Trendlines can be a useful tool for identifying potential support and resistance levels in crypto trading. Follow these steps to use trendlines effectively:
Step 1: Identify a Trend
The first step is to identify a trend in the asset price you are trading. If the line climb upwards, the trend is considered bullish. If it sink downwards, the trend is considered bearish.
Step 2: Draw the Trendline
Once you have identified the trend, draw a line that connects the lows in an uptrend or the highs in a downtrend. This line will serve as your trendline.
Step 3: Look for Support and Resistance Levels
The trendline can act as a support or resistance level depending on the direction of the trend. In an uptrend, the trendline is a support level; in a downtrend, it is a resistance level. Look for areas where the price touches or crosses the trendline. These are the potential support or resistance levels.
Pivot Levels
Pivot points are a widely used technical analysis tool to determine potential support and resistance levels. You calculate them based on the previous day's high, low, and closing prices. Here are the steps to use pivot levels as an indicator to find support and resistance levels in trading:
Calculate Pivot Points
Pivot points are calculated based on the previous day's high, low, and close prices. There are several ways to calculate pivot points, but the most common method is the Standard Pivot Point Formula (SPPF), which is:
Pivot Point (PP) = (High + Low + Close) / 3
Find the Support and Resistance Levels
Once you have calculated the pivot point, you can find the support and resistance levels using the following formulas:
Resistance level 1 (R1) = (2 x PP) - Low
Resistance level 2 (R2) = PP + (High - Low)
Resistance level 3 (R3) = High + 2 x (PP - Low).
Support level 1 (S1) = (2 x PP) - High
Support level 2 (S2) = PP - (High - Low)
Support level 3 (S3) = Low - 2 x (High - PP)
Look for Potential Levels
The support and resistance levels can act as potential levels for entering or exiting trades. If the price approaches a resistance level, it may be a good time to sell the asset or place a short position. Conversely, if the price approaches a support level, it may be a good time to buy the cryptocurrency or enter a long position.
Historical Data
Historical data in cryptocurrency refers to the record of past price and volume movements of a particular crypto asset. This data is collected and stored in blockchain data aggregator platforms, allowing traders, investors, and analysts to study the behavior of the cryptocurrency over time. Here are some steps you can take to use historical data to identify support and resistance levels:
Collect Historical Price Data
To find support and resistance levels, you must collect historical price data for the cryptocurrency you are interested in trading. CoinGecko is the world's leading independent blockchain data aggregator platform tracking over 11,000 cryptocurrencies across 600+ exchanges.
Plot the Data on a Chart
Once you have collected the historical price data, you can plot it on a chart to visualize the price movements over time. You can use a candlestick chart, line chart, or another type of chart to display the data.
Identify Key Price Levels
Look for areas on the chart where the price has repeatedly bounced off or struggled to move past. These levels are known as support and resistance levels, respectively.
Draw Lines to Connect the Levels
Once you have identified the key support and resistance levels, you can draw horizontal lines to connect them on the chart. This will help you visualize the price range which the asset has been trading within.
Use the Levels to Inform Your Trades
You can use the support and resistance levels to enrich your trading decisions. For example, consider selling or shorting the asset if the cryptocurrency's price is approaching a resistance level. Conversely, if the price is approaching a support level, consider buying or going long on the asset.
It's important to note that support and resistance levels are not exact price points but rather price ranges where buying or selling pressure has been historically significant. Additionally, historical support and resistance levels may not hold up in the future, so it's important to combine them with other indicators in your trading analysis and rely on something other than them.
Support and Resistance Strategies
Support and resistance strategies refer to using key levels on a price chart where buying and selling pressure is concentrated. You can use these levels to make informed investment decisions. Below are three support and resistance strategies that will help you better execute your trades:
Stops and Limits
Stops and limits are important risk management tools in trading to help traders manage potential losses and profits. A stop order is a type of order that automatically closes a trade when the market price reaches a specified level. On the other hand, a limit order is an order to buy or sell an asset at a set price or better. This strategy will help you to better manage your profits and losses after identifying support and resistance levels.
Pending Orders
Pending orders are orders placed to buy or sell an asset at a specified price. Traders use these orders to enter or exit a trade when the price reaches a specific level. You can use them to enter a trade when the price breaks through a resistance level or exit a trade when it reaches a pre-determined profit target.
Corrective Structures
Collective structures are price patterns that occur during price corrections or market retracements. These structures are used by traders to identify potential areas of support or resistance and to make decisions about when to enter or exit trades.
Corrective structures can be simple, such as a basic pullback, or more complex, such as a double or triple zigzag correction. You can use them to identify potential support or resistance areas and make informed trading decisions.
Conclusion
Support and resistance levels act as a foundation for technical analysis; hence, you should master them early enough in your trading journey. A support level is the price point where the price fails to break below, while a resistance level is where the price fails to break above regularly. Confirming potential support and resistance levels with multiple technical indicators, such as moving averages, round numbers, trendlines, pivot levels, and historical data will help to increase the accuracy of your analysis.
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