$BTC 🔥🔴 SUPPORT AND RESISTANCE 🔥
Support and resistance are key concepts in technical analysis used by traders to identify potential price levels where a financial asset may pause or reverse its current direction.
🔴Support: Support refers to a price level at which a security tends to find buying interest, preventing the price from falling further. It is like a floor that supports the price from going lower. When the price reaches a support level, buyers perceive the asset as undervalued, leading them to enter the market and potentially drive the price back up. If the support level holds, it reinforces the bullish sentiment. However, if the support level is breached, it may signal a weakening of the bullish trend and could lead to further downward movement.
🔴Resistance: Resistance, on the other hand, is a price level at which a security encounters selling pressure, preventing the price from rising further. It acts as a ceiling that caps the upward movement of the price. When the price approaches a resistance level, sellers perceive the asset as overvalued, prompting them to sell and potentially push the price back down. If the resistance level holds, it reinforces the bearish sentiment. However, if the resistance level is breached, it may indicate a strengthening of the bullish trend and could lead to further .