What are the indicators that show support becoming resistance in the cryptocurrency market?

3 answers

• Dec 26, 2021 · 3 years ago
  One indicator that can suggest support becoming resistance in the cryptocurrency market is a significant price level that has previously acted as support but is now acting as a barrier for further upward movement. This can be seen when the price repeatedly fails to break above this level, indicating that buyers are no longer able to push the price higher. Additionally, a decrease in trading volume at this level can also indicate a shift in market sentiment and the potential for resistance to form. Traders often use technical analysis tools such as trendlines, moving averages, and Fibonacci retracement levels to identify these areas of support turned resistance.
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• Dec 26, 2021 · 3 years ago
  Support becoming resistance in the cryptocurrency market can also be indicated by a change in the order book. If there is a significant increase in sell orders at a previously strong support level, it suggests that traders are now looking to sell at that price, creating resistance. On the other hand, a decrease in buy orders at that level can also signal a shift in market dynamics and the potential for resistance to form. Monitoring the order book can provide valuable insights into the changing market sentiment.
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• Dec 26, 2021 · 3 years ago
  At BYDFi, we've observed that one of the indicators that show support becoming resistance in the cryptocurrency market is a sudden increase in selling pressure at a previously strong support level. This can be seen when there is a surge in sell orders and a lack of buying activity, causing the price to struggle to move higher. Additionally, a break below the support level followed by a retest that fails to break back above it can also indicate a shift in market sentiment and the formation of resistance. Traders should closely monitor these indicators to make informed trading decisions.
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