What is resistance in cryptocurrency trading and how does it affect price movements?

1 answers

• May 10, 2022 · 3 years ago
  Resistance in cryptocurrency trading is a key concept that traders need to understand. It refers to a price level where there is a significant amount of selling pressure, causing the price to stall or reverse. When the price reaches a resistance level, it indicates that there are more sellers than buyers at that price, which can lead to a price decline. Resistance levels can be identified using various technical analysis tools, such as chart patterns, trendlines, or moving averages. Traders often use resistance levels as a guide to set their profit targets or place sell orders to take advantage of potential price reversals. It's important to note that resistance levels can sometimes act as support levels once they are broken, meaning that they can become a price level where buyers outnumber sellers.
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