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

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

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

When it comes to these levels btcusd price can either bounce off these levels or break these levels.

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

If a support level is broken btcusd price will move lower and the this level will turn to a resistance.

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

Once btcusd price has broken through a support or a resistance then it is likely that the btcusd price will continue moving in that particular direction until it gets to the next support or resistance level.

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

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

These levels are calculated a bitcoin trend lines method.

Upward Trend

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

Upward Trend

Downward Trend

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

Downward Trend