How does support work in crypto trading?

Sign up for CoinDesk’s Learn Crypto Investing Course. On the other side, traders may say there’s “support” around a price point or range for an asset, meaning the price tends to bounce back up whenever the asset nears that price because investors now see it as a bargain, and will swoop in and buy it, stopping further drops in price.

What is a support level in crypto trading?

What is a Support Level? In crypto trading, support is the price level at which an asset is expected to experience significant buying pressure. In other words, a region where a bearish trend is thought to experience temporary resistance or total reversal.

What is support & resistance in crypto?

Support and resistance are key concepts used in technical analysis of assets, including crypto assets. Support is a price level, where a downtrend can be expected to pause due to a concentration of demand or buying interest. As the price of an crypto asset drops, demand for the asset increases, thus forming the support zone. And vice versa.