Target Prices and Resistance Levels?

[jerry0]

Why are target prices and especially resistance level terms that people use so much?  What is the point of saying target price unless you are going to buy or sell btc at that price?  Or is that what people mean by the target price?


When you have people talk about overcoming the resistance level of 22k and things like that.  Then talk about how there will be a barrier at 24k.  Are people just randomly spewing stupid numbers out there?  First off, are people just randomly pulling numbers out whether it's 22k or 33k?  And why those numbers?  It gets even more foolish when there is talk about resistance level at 32700 when say btc price is 31200.  Is there a big difference between saying the resistance level at 32700 or 32900?  Why not just say 33k? Then again why not say 35k?  So if it passes the resistance level of 33k, then there is no talk about it anymore?  Well it eventually will go back down to 25k and then there will be talk and gossip about will it hit the target or resistance level of 27k.  Does anyone here find this just stupid or pure garbage?  I mean btc has hit 27k and 33k many times and went back down and went back up.  To me, unless you are talking about the all time high or close to it, what's the point of all this nonsense?  Now the same can be said about altcoins but this talk always seem to be about btc and eth and the top coins.


 
When there is talk about these target prices or resistance levels in the news or threads about it here... it seems stupid.  Like when btc went above 20k and then went really fast above it to 22k.  People say wow it went over that 20k level so fast.  The same when it went to 30k and then 33k.  But it then went down all the way to 15k etc.  Is this just all gossip or pure garbage discussion?  Or is there something I'm missing here?  I have no issue when people ask will btc hit 50k again or the all time high or higher.  But when they say anyone here think it will have issues at the resistance level at 27k, then there are lot of replies about it... it just seems foolish.  I mean is there really a difference between going past 27k compared to 28k?  This talk makes it sound like it's a video game like when you played as a kid saying oh this level x boss is very tough so level 27 boss is tough but the 28k boss is much easier.  Yet these are just numbers and people making it seem like certain numbers are tougher to reach?  Then it reaches it again many times and goes back down many times and you hear this discussion yet again.  Now if I'm wrong here, can someone explain to me what I am wrong here about?  Unless you are trading actively, all this is basically just useless noise right?

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[franky1]

first of all.. "resistance" is the wall that slows down or stops trades from going UP
             .. "support" is the wall that slows down or stops trades from going DOWN

there are many many statistics people can gather that form these measures
ill give you a couple simplified ones for novices

a. if you look at the market-order-book of exchange you can see the depth of all the orders.


you can see the differences of the depths.. if its a cliff.. its a wall if its flat its open to move

be cautious.. many times these walls are "ghosts".. traders can set many orders to create a wall of resistance/support, but if the price gets close to their order they cancel all the orders and the walls fall flatter. this is when viewers then get shocked that the price easily passed a wall and they act surprised how easy the wall fell


b. futures market have people locking in contracts that complete at certain prices. if the prices hit and contracts complete this can change the markets
we see this alot where there are many contracts to bet that prices wont breach over $39k so you see lots of whales do spot trading to sell and arbitrage and sell to keep the price below $39k to resist a price pump until their contracts expire. and then suddenly the spot order book changes with no sell resistance wall

there are many other measures that people can find.
and if you are following people that just only draw a line on a candlestick chart. and only talk about historic trend repeating, unsubscribe from them

[wallet4bitcoin]

first of all.. "resistance" is the wall that slows down or stops trades from going UP
             .. "support" is the wall that slows down or stops trades from going DOWN

there are many many statistics people can gather that form these measures
ill give you a couple simplified ones for novices

a. if you look at the market-order-book of exchange you can see the depth of all the orders.


you can see the differences of the depths.. if its a cliff.. its a wall if its flat its open to move

be cautious.. many times these walls are "ghosts".. traders can set many orders to create a wall of resistance/support, but if the price gets close to their order they cancel all the orders and the walls fall flatter. this is when viewers then get shocked that the price easily passed a wall and they act surprised how easy the wall fell


b. futures market have people locking in contracts that complete at certain prices. if the prices hit and contracts complete this can change the markets
we see this alot where there are many contracts to bet that prices wont breach over $39k so you see lots of whales do spot trading to sell and arbitrage and sell to keep the price below $39k to resist a price pump until their contracts expire. and then suddenly the spot order book changes with no sell resistance wall

there are many other measures that people can find.
and if you are following people that just only draw a line on a candlestick chart. and only talk about historic trend repeating, unsubscribe from them

Frankly, your explanation gave me a new narrative about the walls from the diagram you put up there, I never really understood it that way even though I understand the concept from the chart more than the diagram.


I believe "Target price" is the level at which one wants the price to rally to, either a support or resistance or a possible "take profit" line. It has got nothing to do with the entire market as parameters for "target prices" vary.


Resistance levels are just levels where the price of an assets bounces off and reverses downwards, its  not a complicated situation, however, it is pertinent to note that a resistance level can be someone's "target price".

[franky1]

this might help more to explain walls


and yes targets are usually individual/personal to each person. or some bet someone has. we are no where near 2025 to be talking about a All Time High

you usually see people talk about 2x - 3x as their target if they are mid-long term investing
some just want to take a 1.5-2% profit target if they are day trading

[MusaMohamed]

Resistances and supports only show their powers when there is no Short Squeeze or Long Squeeze. When Short Squeeze or Long Squeeze occurs, resistances and supports, even how strong they are, will be broken very quickly because of market liquidations.

Bitcoin Support and Resistance for dummies

You can use support and resistance to identify a price channel and use it for scalping trade but do it with Spot trading only. Because if you use leverages, when a price channel is broken, support or resistance is broken, your leveraged position will be liquidated.

[Blitzboy]

Actually, there isnt a resistance zone. Instead, its more of a band that changes based on how investors and the market think. Investors arent making up numbers like 27k or 33k when they talk about barrier levels. After looking at old data, these numbers show places where Bitcoin has been sold off in the past.

To put it another way, these numbers are like psychological signs for buyers. As a result, supply and demand have been affected by changes in investor feelings at those times. Yeah, the arguments can get too heated at times, but they're not completely pointless. Patterns, not just prices, are important. There is a lot of psychology behind these talks, even if they seem like just guesswork. If investors feel happy buying or selling at certain levels, that affects the price movement. Although, keep in mind that Bitcoin, like any other asset, is open to changes in the market, and these levels are only suggestions, not rules.

[Doan9269]

Why are target prices and especially resistance level terms that people use so much?  What is the point of saying target price unless you are going to buy or sell btc at that price?  Or is that what people mean by the target price?

This is just like you're trying to perform a trade and decided to make use of a limit or instead of a market order, you can wait for long without having your order being confirmed with the value of the rate you place for the market to sell, so it's more easier to use a market order than limit which is under assumptions, if you guess right, you win and if you don't then you losse or keep waiting for your order to get confirmed, we may not be always accurate with the way we predicted our own market view, remember we are dealing with a volatile currency, it can go the opposite of what we presumed.

[Sayeds56]

Resistances and supports only show their powers when there is no Short Squeeze or Long Squeeze. When Short Squeeze or Long Squeeze occurs, resistances and supports, even how strong they are, will be broken very quickly because of market liquidations.

Bitcoin Support and Resistance for dummies

You can use support and resistance to identify a price channel and use it for scalping trade but do it with Spot trading only. Because if you use leverages, when a price channel is broken, support or resistance is broken, your leveraged position will be liquidated.

You are absolutely right, while support and Resistance are important measures and well recognized indicators utilized by professional and ordinary traders. However, they can only show their strength when their is not short and long squeeze, their effectiveness diminishes under extreme pressure of squeeze . Wherever intense short or long squeeze occurs, no matter how strong these support and level are, eventually they will be broken, and in such scenarios, accounts of future traders are often liquidated if they don't use any risk management tools, such as stop-loss.

[jerry0]

So which post is correct here on the actual meaning of target price and resistance levels?

[franky1]

So which post is correct here on the actual meaning of target price and resistance levels?

target is more individualistic in peoples heads
resistance is more collective in market order books and notable collective futures contract points

[philipma1957]

So which post is correct here on the actual meaning of target price and resistance levels?

For the sake of argument the current BTC resistant point would be 40k. We are yet to pass it this year and we are close to it.

I ladder up so I have multiple targets personally.

40404 _ I sell a bit
42424 _ I sell a bit
45454 _ I sell a bit

so I have three current target points.

and the general resistance point for all of btc is 40K at this moment.

MY post is close enough to accurate and you will find that close enough tends to work.

I have been predicting 42k for dec 1 and 48 k for dec 31 for months

with a small pull back in Jan

[adaseb]

The closest resistance area from here will be the $40K psychological number. Why? Its just a nice round number. Looking at the chart however it doesn't really have any significance but I expect some resistance just that its a big round number. These sometimes worked as short term resistance but never really as long term. Look at what happened when we broke $20K and $50K.

After that might be the $48K area which is a pivot and also a fib number. And after that we got the bigger $50K round number and above that another $52K pivot. But we are far away from those and don't need to worry about them for the time being.

[btc78]

So which post is correct here on the actual meaning of target price and resistance levels?

target price is used by investors to identify what is the right time to buy or sell they typically use different kinds of strategies but mainly this depends on historical data

resistance level is a point in which the coin has struggled to get past historically speaking when the price is almost at the resistance level investors might anticipate a gradual slowdown of increased prices

[franky1]

resistance level is a point in which the coin has struggled to get past historically speaking when the price is almost at the resistance level investors might anticipate a gradual slowdown of increased prices

no its not based on "historically" you are obviously someone that just watching youtube trend anals that show a chart and then draws a line and say "look this also happened in X year"
if your influencer just talks about triangle patterns and moving averages.. unsubscribe from that influencer.

those type of people are not Technical Analysts .. they are Trend Anals
big difference

if you are not looking at mining costs of well known asic farms locations
if you are not looking at known exchange reserves in:out flows..
if you are not looking at the demography of traders..
if you are not looking at UTXO confirmation age...
if you are not looking at the spot market depths..
if you are not looking at futures markets limits.

then you are not doing technical analysis

[pinggoki]

The closest resistance area from here will be the $40K psychological number. Why? Its just a nice round number. Looking at the chart however it doesn't really have any significance but I expect some resistance just that its a big round number. These sometimes worked as short term resistance but never really as long term. Look at what happened when we broke $20K and $50K.

After that might be the $48K area which is a pivot and also a fib number. And after that we got the bigger $50K round number and above that another $52K pivot. But we are far away from those and don't need to worry about them for the time being.

Most of the time, the prices that have the resistance are those that have the satisfying appearance to it, didn't last time the resistance was around 30k, 35k, 40, 45k, 50k and so on? Probably the resistance is with the fact that there are some people that have been taking some profit here and there so they sell at this point. I don't even know now if I'm still going to take a profit when the price goes to 50k because I have a feeling that when it hits that point, we would probably see bitcoin go to 100k or higher so might as well hold on to my bitcoins for now, don't want selling prematurely.

[franky1]

I don't even know now if I'm still going to take a profit when the price goes to 50k because I have a feeling that when it hits that point, we would probably see bitcoin go to 100k or higher so might as well hold on to my bitcoins for now, don't want selling prematurely.

if you have a $50k target where you might sell. but then have the FOMO of hoard for higher returns. you are not forced to make one or the other decision.. you can always .. do both.
sell half hoard half

if the price drops you can buy more in the dip using the half thats then fiat. if the price continues to rise you still have half to get to next target at 100k

the real question is not if it will reach $100k.. its more about when.. so the real decision is. do you really need some(half) fiat when it hits $50k or can you wait it out longer

[lombok]

first of all.. "resistance" is the wall that slows down or stops trades from going UP
             .. "support" is the wall that slows down or stops trades from going DOWN

there are many many statistics people can gather that form these measures
ill give you a couple simplified ones for novices

a. if you look at the market-order-book of exchange you can see the depth of all the orders.


you can see the differences of the depths.. if its a cliff.. its a wall if its flat its open to move

be cautious.. many times these walls are "ghosts".. traders can set many orders to create a wall of resistance/support, but if the price gets close to their order they cancel all the orders and the walls fall flatter. this is when viewers then get shocked that the price easily passed a wall and they act surprised how easy the wall fell


b. futures market have people locking in contracts that complete at certain prices. if the prices hit and contracts complete this can change the markets
we see this alot where there are many contracts to bet that prices wont breach over $39k so you see lots of whales do spot trading to sell and arbitrage and sell to keep the price below $39k to resist a price pump until their contracts expire. and then suddenly the spot order book changes with no sell resistance wall

there are many other measures that people can find.
and if you are following people that just only draw a line on a candlestick chart. and only talk about historic trend repeating, unsubscribe from them

The market is prone to manipulation, I think that all market players are fraudsters 😅 (including me meaning) Because of its very volatile nature, sentiment suddenly reverses direction and so on. Regarding the price history repeating itself, I don't think it's because the price movements are also different. Candlesticks cannot be used as a benchmark, sometimes their movements are wild depending on market supply and demand and the market players themselves.

What you say often becomes a trader's benchmark for measuring an order block or resistance/support. And this order block can be a strong benchmark for the direction of price movements, but can also sometimes be deceptive depending on the direction of the trend itself.

The conclusion I can draw here is that in trading we need several supporting data, just one data is not enough.

[EluguHcman]

This is why I don't awaits for the falling rate (depreciation value) to come before I could accumulate more to my Bitcoin wallet rather if chances comes at a falling of price, such is are appreciatable reasons to take advantage and accumulate more.
I basically don't believe in Bitcoin predictions on my Bitcoin journey because investors predicts doesn't make changes neither does it make individual differences considering ones favour.
The volatility of Bitcoin is not such flexibility to individual considerant. I just have to believe that Bitcoins predictions is the investors anxieties that also speculates the rumours of Bitcoin.

@ OP, I am backing your exaggerations up with the previous historical prices of Bitcoin that has the rate of the coin at the values of UPs and DOWNs.
Bitcoin is flexible to inflations and deinflations that is depended to the investors of demands and supplies which is certainly undefinable because Bitcoin is a global accepted measure of investment and of course a unified digital currency for exchange of goods and services which doesn't have the system to its users totality present to its investors and not even to the expert trades whom are believed to have accurate or convince able predictive experiences.

Here is the historical prices of Bitcoin which its history is liable to repeat itself or certain history is termed unbeatable. I believe we have since been expecting the price of Bitcoin to to get to or beat the history price of November 2021 where the price was at $69k and yet unbeatable while investor still appreciate the current price of todays can could termly say it is a bull running at when accelerating from mergings like $25 to $39k as today and it is being appreciated yet still doesn't beat the highest price in history yet.

Interestingly you can read about in my previous thread tjat talks about "The will of Bitcoin is not the will of man".
https://bitcointalk.org/index.php?topic=5474920.msg63259941#msg63259941
That is just to say the agitations, the predictions and the exaggerations about the values of Bitcoin is just rumours just as OP has said it is because Bitcoin is hovered according to its potential volatility.

[franky1]

This is why I don't awaits for the falling rate (depreciation value) to come before I could accumulate more to my Bitcoin wallet rather if chances comes at a falling of price, such is are appreciatable reasons to take advantage and accumulate more.
..
That is just to say the agitations, the predictions and the exaggerations about the values of Bitcoin is just rumours just as OP has said it is because Bitcoin is hovered according to its potential volatility.

"value" is not PRICE
the value is the long term bottomline SUPPORT where no one sells below..
the price wiggles above value

here (in green) is where value is roughly laid out

[franky1]

its worth noting..
as soon as the futures "shorts contracts" (wanting to keep prices below $39k) closed.. the whales removed the $39k spot reisitance wall
and now .. boom, over $40k spot price

https://www.coindesk.com/markets/2023/12/04/bitcoins-price-rise-to-41k-buoyed-by-200m-in-weekend-short-liquidations/

..
the spot market actually does want to go up naturally. there are many people in pacific islands willing to pay upto $150k right now due to mining costing them $150k.. but the futures market of shorting. want to artificially keep the spot market down so their leveraged short contracts can profit if the price stays down

the best example of this was october2022-january 2023 where each week had a flat line and adjusted in a few days for the next weeks resistance..(if you zoom out on the 1 year view)
in trading.. a flat line is artificial, not natural