Bitcoin is approaching the $45K resistance level, with support at $40K. What does this mean?

Bitcoin is approaching the K resistance level, with support at K. What does this mean?

Understanding the concept of bitcoin market trends of resistance and support, we should first have an idea of the resistance level and support.

Resistance level:

The resistance level is the maximum peak value a market of any particular currency or asset can achieve during the trading period. It informs about the tendency of the seller what price they are expecting to sell their asset.

Support Level:

The support level is the minimum value a market of any particular currency or asset, to which it can fall. This support level informs about the minimum value of any asset or currency buyers are expecting.

Resistance and support level bounces back the price or value of any asset, which means the price will not increase from this peak level, probably in case of resistance and vice versa in case of a support level.

Resistance level 45K$

Now, coming back to the main question, if the resistance level of Bit coin market or bit coin is 45k$, it is the expected maximum value Bitcoin can achieve during any trading period concisely saying. After reaching this peak value, the price of bitcoins will probably move downward or fall until it comes to a support level. But resistance level might not exist for a long time at the same 45K$. It can increase either to 46K$, 50K$, or beyond. That is why the Bit coin market is volatile. It can go up in a flash, but it can come down crashing immediately. If the Bitcoin market trend changes and resistance level is breached, it will increase until it finds another resistance level. This resistance level will repel the increasing prices of bitcoin. The exact process keeps on going all the time in the Bit coin market and trading.

Support level 40K$

It has been discussed in detail previously that what support level is and how does it work. When we say the support level for Bitcoin is 40K$, this means that bit coin price is expected to fall until this minimum level. After reaching this level, it is expected to bounce back upwards toward the resistance level. A support level is a more critical thing than resistance when it comes to the bit coin market. If it stays stable or fluctuates minutely, it helps investors and shareholders to invest smartly to earn more. But like that of resistance level, the support level is not rigid too. Support level reflects the lowest value tendency on which more buying orders are pending. If the support level is 40K$, it means more investors are interested in buying at this level. Support levels can also change depending on the available bitcoin market conditions. Once the price falls from a certain support level, it will find itself a new support level. It can either be 39K$, 35K$, or below in this particular case.

Bitcoin trading and resistance, support levels:

Why is it necessary to have this idea of resistance and support level while Bitcoin trading? It is simply understandable for anyone who knows these basics. Before investing money in the market, you tend toward changing trends of resistance and support level. When buying or selling Bitcoin, one should know how to invest smartly, keeping these extreme values. One can get a lot of profit if he buys the bitcoins on the support level and sells it when its standard price reaches the resistance level. If the investor is lucky, he might see the price crossing the resistance level reaching up a new peak value. It had happened in the past due to which millions of investors got loads of profit.

But, it is still a gamble even with this good tendency. If the support level is breached, the price might come crashing down, leading to many losses. It also had happened in 2017 and 2018.

Share to Social Media

Share on facebook
Share on telegram
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on whatsapp

Recent News

Hot stories

Join Our Newsletter