Support and Resistance Bitcoin Trading Analysis & Support and Resistance Trading Signals

Support & Resistance is one of the widely used concepts in bitcoin trading. Most traders draw horizontal lines to explain these levels.

There is also an indicator used to draw these levels automatically & indicate the resistance and support levels.

When it comes to these levels price can either bounce off these regions or break out through these regions.

If a resistance level is broken price will move higher and the resistance level will turn to a support.

If a support level is broken price will move lower & this level will turn to a resistance.

Bitcoin Price where the majority of investors believe that bitcoin trading prices will move higher, while resistance levels indicate the bitcoin trading price at which a majority of investors feel bitcoin trading prices will move lower.

Once bitcoin trading price has broken through a support or a resistance then it is likely that the price will continue to move in that specific direction until such a time when it gets to the next support or resistance zone.

The more often a support or resistance level is tested or is touched by the price and bounces, the more major that particular level becomes.

BTCUSD Analysis & Generating Trading Signals

These levels are calculated a bitcoin trend lines method.

Upward BTCUSD Trading Trend

In an upwards bitcoin trend the resistance & support will generally head upward

Upward Bitcoin Trading Trend

Downward BTCUSD Trading Trend

In a downwards bitcoin trend the resistance and support will generally head downward

Downward Bitcoin Trading Trend