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Understanding Resistance and Support in Crypto Trading

Understanding Resistance and Support in Crypto Trading

In light of the industry's meteoric rise in popularity over the last few years, a rising number of people are interested in entering the cryptocurrency market. Any crypto trader who is just starting out would do well to familiarise themselves with the concepts of support and resistance. Obviously, even seasoned traders may benefit from this insightful data.

What Do Resistance and Support Mean?

These phrases are common in foreign exchange trading but are equally applicable to the crypto market. They represent regions of a graph where a great deal of buying and selling is taking place.

  • In a cryptocurrency trading chart, support is the price level at which the price of the asset temporarily stabilises.
  • In a cryptocurrency trading chart, resistance is the price level at which gains are halted.

Cryptocurrency traders might benefit from using technical indicators like support and resistance to guide their trades.

The Advantages of Crypto Trading with Support and Resistance

The four advantages of using support and resistance while trading cryptocurrency are as follows:

Improve Your Trading Methods

One of the most unstable financial markets is bitcoin trading. You need a planned approach to trading if you are a beginner because of the high risk of substantial losses caused by market volatility. The concepts of support and resistance may be used to develop a more rational trading strategy in the cryptocurrency market.

Find Market Patterns

It's also useful for spotting market patterns, which may influence whether or not a trader decides to participate in the cryptocurrency market.

Facilitate entry and exit points.

Using support and resistance, traders in cryptocurrency can pinpoint the best times to enter and leave a trade. The trader may approach the market with a more confident stance using these levels.

Management of risks

Both tiers have value as instruments of risk management. Support and resistance may be used to improve risk management with the numerous risk management tools offered by leading online brokers like easyMarkets for cryptocurrencies and other supported assets. In the event of a downward rise, a trader who has initiated a long position might protect their capital by setting a Stop Loss order below the support level.


One of the smartest moves you can do as a trader in the cryptocurrency market is to open an account with briansclub. The company is dedicated to enhancing traders' experiences and has taken steps like integrating Bitcoin as a base currency.

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