Do you believe support and resistance still work in crypto?

[davinchi]

Most of the time, support and resistance don't work for altcoins movement too, yes!!!
How do you locate a resistance and support when there is real fomo for a coin that's ready to 200%. Chainlink made a rally from $4 to $20 new all time high within 3 weeks nonstop, opening and closing position often with such kind of movement wouldn't really giveout positive results with good PNL most especially when one is trading futures and margin.

Support and resistance work most of the time with Bitcoin as observing currently, we are about to make new all time high, if we manage to do that, it will create another room for new bull run in history of cryptocurrency.

That is what I am talking about, right? I mean we can't be just ignoring something as major as these points, we are aware, but I just think I haven't seen it work as well as intended most of the time.

Support lines should suppose to mean that it must be harder to drop but we look at prices and it breaks under the support line very very easily sometimes without any type of problem, then we look at the resistance points that suppose to mean it should be harder to go over, but every single line of resistance was broken into pieces when we moved closer to 20k. So, what does that mean? Resistance and support should definitely mean something different to other people than it does to us for sure, I just see it as absolutely nothing at all and do not see the point of it.

[Rexler]

For me, yeah support and resistance do work in some cases, but not all the time there's no 100% proven technique to trade crypto as it is too volatile. In the case of a flash crash well support and resistance will have no effect over the movement.

If support and resistance worked in practice there wouldn't be major crashes like that one which sent bitcoin to 2,000$-3,000$. In such a decentralized, volatile and unpredictable market where few whales movements can cause huge fluctuations I see support and resistance theory somehow pointless. How many times I have heard bitcoin was at support level, theoretically *safe* to buy, but it kept falling...

Indeed the market is volatile and its hard to predict what will happen next, but I won't say support and resistance are pointless because those are keys level other traders are waiting to either enter the market or exist the market,thats why it always the first thing you get to learn when you want to venture into the trading space, support and resistance is just like the basics.

[Fatunad]

It works everywhere. Doesn't matter on which market you are working Stocks, Forex, crypto, etc.. . you just need to find the proper strategy and the useful indicators for your market and configure it depending on yourself and your time frame. Some people think resistance and support areas are not useful and TA indicators are not working well on crypto, that's because the markets age. since the market is still young and there are many whales on the crypto and bitcoin market owning a huge amount of the assets, after they buy or sell many resistance and support areas will break. But still working. The point is people usually forget about the fundamental news and they expect the price to react as they want. But the price will act for it's own you just need to find a way and work with it. whenever, you find TA and resistance and support areas not useful, you maybe made a mistake with your TA.

This is spot on, whenever a person makes a trade using a few indicators and then he loses that trade he blames the indicators when most likely it was the trader that made a mistake and does not know how to use those indicators properly, support and resistance is a particular way to look at the markets but it is pretty subjective, it is up to each trader to try to tell where the support and where the resistance is and it is obvious that the traders that have been in the market for a very long time are going to have an easier time dealing with this indicator than someone that is relatively new to it.

Technical indicators had been a pretty common tool for traders of this market.When it comes to effectiveness or precision then theres no such thing about 100%
guaranteed positive results even if you do know on using this.Its true that some people do think and even blame when they had been using these simple indicators
when they do lost up a trade.On the question, does it really work? It would be yes or no because due to randomness of the market then no indicator or tool
would give out precise results.So expect that you would neither experience loss or profit on using but its better to have these things rather than
on trading blindly.

[Bitcoin_Arena]

I do believe in support and resistance. It's one of the best indicators when one is trading major cryptos. I mean look at the current situation. We do have a very strong resistance at the $20k region. If it wasn't there, we would have gone past $20K already. I have used it to my advantage so far to open short positions and I have profited twice so far. However, I know that anytime so, we could have a breakout, and when that happens, I will be ready.

[idrisalomagold]

Majority of the answers believed that support and resistance work in their trading set up. Indeed, it is so crucial and relevant in the market because even newbies can easily grasp the idea in making them profitable trades. In fact, the market is not only whales playing inside but the common knowledge of all retail traders which sums up the overall market. If a newbies can make profits out of just drawing support and resistance areas and make some trades out of it and became successful in the process, then perhaps it can be trusted.

The only time I myself didn't look at support and resistance is when there are relevant events and updates or news upcoming. Because as young as this crypto market right now, fundamentals meant profit.

[STT]

Prior volume matters, thats all anyone has to note and respect that price has significance when alot of people agree on it.   Even the simple idea of a flat number like 10000 or 20000 like we see right now have importance, the main thing we're looking for in a price graph is consensus and when everyone agrees the balance in the order becomes one sided and price moves.    The most widely noted indicator is the 200 day average and I always think a simple story helps make it true because its widely observed so high volume behind a resistance level is good to call out also.
   The problem BTC has is price is distributed across multiple exchanges so its fuzzy info, also many different national currencies of varying strength so everyone's orders will vary some.

[crzy]

It works and i believe we are trying to break the resistance on a current market situation with Bitcoin but if we failed to do so then expect that we will touch the support level again. This is the basic indicators that you should learn first in trading, and its very simple and easy so don’t try to skip from learning this strategy.

[xSkylarx]

Yes, it is the fundamental factor of anything that can be traded on different platforms. Without it, you won't know where is the right price to set your buy or sell order. A basic knowledge about support and resistance can help you to gain profit from trading even if you're not that pro into that stuff.

[Shasha80]

I believe support and resistance are important factors to help analyze price movements in the crypto market.
But we can't just rely on indicators of support and resistance, it must be supported by other indicators too.
Although for me support and resistance still work, Sometimes there is bad news that appears suddenly making
the analysis results using support and resistance inaccurate. Therefore it is important to use other indicators,
to help get a more accurate analysis.

[RealMalatesta]

Well, the difference here is the fact that we are talking about crypto traders and what they use, instead of what bitcoin wants to do by itself. Nobody thinks that bitcoin moves all by itself, it is us traders (or investors) that decide on the price, and how do we decide it?

Yeah, everyone has their own way of deciding what the price will be or should be. This means there must be some people out there who believe that bitcoin resistance and support levels matter and they definitely do make moves on bitcoin related to these factors, and this means even if it is not huge, there must be some trades made based on these two and that could affect the price a bit. I am not saying purely this, but could be a bit related.

[Silberman]

Support and resistance are not really esential for trading, inmy opinion, although it can be a good indicator. For me, trend and volume are more important

I can agree with you, volume can more important than support and resistance! When you think about it, we who are in crypto for years we have seen many times how support can fail, and how resistance can be broken! It's why support and resistance are not essential for trading, you can fully trust that support will hold, or to believe 100% that resistance will not be broken!
Maybe in forex it's different, I can't say much about that (I never tried that, except some reading I was never interested to learn more about it and eventually try it), but in crypto you learn that anything is possible, so look at support/resistance as some temporary borders, that can be moved in any moment! And when volume is high people are in action, and where is the action anything can happen!

It is funny because that is the way that support and resistance should be seen, a level of support or resistance is not absolute, at some point they are going to be broken, what you need to try to tell is how likely it is the support or resistance level that you're watching is going to break? If you see that those levels are strong then you can begin to use a strategy that takes advantage of that but if you think those levels are going to be broken then you could be in the presence of a major trend at its beginning stages.

[AjithBtc]

Yes, the support and resistance with the cryptomarket is real. Myself used to believe on the market growth of bitcoin based on the resistance gained for the forward push. If there isn't much of support the market will move between specific margins without much of forward push. This is also stated to be one way of support level.

[chanler]

Support and resistance are indicators, especially for trading. And in the crypto world, it relates to the statistic of price action. Well, and this is the most indicator that is used in analyzing the market charts of the crypto itself. It relates to technical analysis. I personally think and consider that this indicator is good enough to be used for that analysis. Moreover it is to identify the probability of the market price when it si in uptrend or downtrend and how the correlation to jump up or down.

[Dragonfund]

Support and resistance are not really esential for trading, inmy opinion, although it can be a good indicator. For me, trend and volume are more important

Support and resistance are important just the way volume is essential. Without support and resistance, the entire market will be useless, the whole thing would look exactly like gambling. What makes trading different from gambling are these indicators, they guide everyone when to enter and exit the market, when to accumulate and when top is in. So, you shouldn't base your judgment on personal experience, support and resistance is real in every market except when there is market crash and external conditions that are difficult to manage by technical analysis.

[fullhdpixel]

People mistake why these things are used, all those Bollinger Bands, the MACD the support and resistance lines, the index's etc etc all of these things are used in a way that shows you the guides and points of crypto and tell you something, it doesn't tell you where it is headed, it just tells you the situation. Think of it like warning signs, like that says "be aware rocks may fall" on mountain roads, it doesn't really mean that any rock will fall, most probably no rock will fall at all, but there are few times in the past year that had people get injured because rocks fell, 360 days of the year it didn't fall, but for 3-5 days it did, so you had to put up a sign. This is like that, it doesn't mean it will do that, it just means "it may do this so be careful" and that's it.

[mezzaluna]

I wanted to create a poll for this, but then I thought that I should rather ask for ideas as well as your opinion on this. I believe that we follow some areas we call as support and resistance and it works very well with forex and it did before with cryptocurrencies too. Now, I'd just like to know whether you actually draw those lines on your charts and believe that those areas are worth to be watched as well as turn out to be great support and resistance levels where markets can actually take a retracement or reversal, or you just don't think that they exist and the price either goes too much high when there's nothing ahead (I mean, while creating an ATH) and just shows a freefall when sellers simply dump it? I know it can be a case with some tokens which are useless with no volume, but my question is in regards to major cryptocurrencies like BTC, ETH, LTC, XRP, etc. which share the maximum volume available in the markets.

As far as I can see, there are already some resistance on whether the Cryptocurrency should push through with being known publicly and not just some people who really took their time researching about Cryptocurrencies. The value of Cryptocurrencies are a wonder because nobody really got why its value keeps fluctuating. Users within the forum practically support the use of Cryptocurrencies but some of them are careful on getting known publicly since it can generate power for them since its a good financial support system.

[Dragonfund]

unfortunately I don't really believe it because so far cryptocurrency price movements depend on the interaction between buyers and sellers at the exchange, so if there are words of support and resistance it is a term to make it easier to mention when the price collapses.

You are generalizing some shitcoin chart to well standard chart. Support and resistance work in every market between buyer and seller as you have said above, though this is alway difficult to establish in altcoins since most of the time they are pumped and dumped by whales, no reference to points, they are a after making quick profits and cheating other.
Bitcoin and Ethereum respect support and resistance, that's what has been guiding traders for long time and it has been working flawlessly.

[dunfida]

Yes, the support and resistance with the cryptomarket is real. Myself used to believe on the market growth of bitcoin based on the resistance gained for the forward push. If there isn't much of support the market will move between specific margins without much of forward push. This is also stated to be one way of support level.

Might not be precise but these indicators or technical tools are really helpful towards your trading analysis.This is much better rather than on using nothing at all.
We cant say if it really works but you can at least point out where are the support and resistances of the entire market price and with that you can make out
some analysis which is the most common thing when you do make out some decision towards it.

With some experience you can already determine where are those support and resistance with just watching or doesnt really need to plot out.

[Fortify]

I think that support and resistance are almost non-existant with cryptocurrencies like Bitcoin. At best you can see that Bitcoin is currently well established within the 10k to 20k range this year, but it very much feels like sudden unexpected shocks can cause the price to tumble. The bitcoin market has shown it can be entirely random and irrational, jumping thousands either way within a day. It feels a bit like technical traders are trying to project stock market techniques on to a highly unpredictable asset.

[xSkylarx]

I think that support and resistance are almost non-existant with cryptocurrencies like Bitcoin. At best you can see that Bitcoin is currently well established within the 10k to 20k range this year, but it very much feels like sudden unexpected shocks can cause the price to tumble. The bitcoin market has shown it can be entirely random and irrational, jumping thousands either way within a day. It feels a bit like technical traders are trying to project stock market techniques on to a highly unpredictable asset.

Bitcoin is very volatile but support and resistance also work on this type of asset. How can an experienced trader position its trade if bitcoin has no support and resistance? It moves in an unexpected way sometimes but not always what you think. Like now bitcoin has been stable around $18k so trading around this price can earn you some profit.