Support and Resistance
Price levels where an asset historically tends to stop falling (support) or stop rising (resistance).
Explained Simply
Support is a price level where buying interest is strong enough to prevent further declines. Resistance is a price level where selling pressure prevents further gains. These levels form because traders remember past prices and act on them. When support breaks, it often becomes resistance, and vice versa. While support and resistance are widely used in technical analysis, they are not guaranteed to hold — major news or market events can blow through any level.
Example
If Bitcoin has bounced off $60,000 three times, that price becomes a recognized support level. Traders expect buying pressure there.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.