Question #349 ·
Why are support and resistance levels like $88,000 and $93,000 key for understanding Bitcoin’s price action?
- They are only relevant for on-chain transaction analysis rather than chart trading.
- They guarantee the price will never move beyond those specific levels.
- They mark key price points where buyers and sellers typically enter or exit trades. Right answer
Why is this the correct answer?
This is correct because support and resistance are horizontal levels on a price chart where demand or supply has historically been strong. Beginners should learn that traders watch these levels to decide when to buy near support or sell near resistance, making them essential for planning trades.