Question #120 ·
What do the support level at $107,000 and the resistance level at $110,000 indicate about Bitcoin stability?
- Resistance at $110,000 guarantees Bitcoin will fall from there
- Support at $107,000 suggests buyers step in; resistance at $110,000 shows selling pressure Right answer
- Support at $107,000 means no one buys below; resistance has no meaning
Why is this the correct answer?
This is correct because support levels represent price points where demand tends to increase, helping to prevent further declines. Resistance levels mark areas where supply tends to outpace demand, capping upward moves. Beginners should understand that if Bitcoin repeatedly bounces off $107,000, that level is a buying zone, while breaking above $110,000 could signal a new upward trend.