$BSW /USDT

In technical analysis, support and resistance are two key concepts that help traders identify price points on a chart where the asset’s price tends to stop and reverse.

Support refers to a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest. As the price of an asset drops towards this level, buyers become more likely to purchase it, preventing the price from falling further. If the price breaks below support, it signals a shift in sentiment, potentially leading to further declines.

Resistance, on the other hand, represents a price level where a rising trend may pause due to selling interest or supply. As the price approaches this level, sellers start to offload their positions, halting upward momentum. If the price breaks above resistance, it can indicate stronger buying pressure, leading to higher price movements.

Both support and resistance can be seen as psychological thresholds where buyers or sellers become more active. Traders use these levels to set entry and exit points, stop losses, and to gauge market sentiment. The more often a price tests these levels, the stronger they become, influencing future market behavior.

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