Crypto Trading 101: An Introduction to Support and Resistance

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New to crypto trading? Read CoinDesk’s full set of guides. Are you a crypto trader struggling to find a footing in a volatile crypto market? If yes, then the first thing you need to master is the art of identifying support and resistance levels. Imagine bouncing a ball inside your house. There are two barriers that will limit the flight and fall of the ball – your floor and ceiling. In trading, there are similar barriers that limit the movement of price action known as support and resistance. Such barriers in trading can have long-lasting effects on an asset, since price action rarely forgets its past. If traders regard a certain price level as a great entry or exit point, it will likely continue to act as a barrier for prices until all of their respective needs are satisfied. Support For example, buyers will generally continue to buy at