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Question #53

What do support and resistance levels and high trading volumes tell us about recent Bitcoin price trends?

Category: General
Resistance levels guarantee the price cannot ever move above them, so Bitcoin will never break $126,000.
Support levels are purely psychological with no real influence on price action.
High trading volume always predicts a market reversal, so Bitcoin is bound to drop soon.
High trading volumes (over $60 billion daily) signal strong investor interest and market participation, reinforcing price stability in the current uptrend. Support levels around $118,000 show where buyers consistently step in to prevent further drops, while resistance near $126,000 indicates price points where selling pressure may temporarily halt gains. Together, these indicators confirm a healthy bullish trend.

Why is this the correct answer?

This is correct because volume shows how many participants are trading at current prices, and when volume is high during a price rise, it indicates conviction. Support and resistance levels are price zones where buying or selling pressure has historically emerged, helping traders identify potential reversal or continuation points.

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