Question #533 ·
What insights can beginners gain from Bitcoin's support at 90,000 dollars and resistance at 94,253 dollars?
- Beginners believe trading volume dictates support and resistance over price.
- Beginners understand network security levels fluctuate around mining difficulty thresholds.
- Beginners learn price likely rebounds at support, stalls at resistance. Right answer
- Beginners assume transaction fees drop near support, spike around resistance.
Why is this the correct answer?
This is correct because support levels represent price points where buying interest tends to increase, leading to rebounds. Resistance levels are zones where selling pressure may rise, causing price stalls. Recognizing these helps beginners anticipate potential entry or exit points.