Support is a level where falling price has historically met enough buying pressure to stall or reverse; resistance is the opposite — a level where rising price has met selling pressure. Both rely on the principle of market memory, that historical levels influence future behavior. Support/resistance can be horizontal (prior swing highs and lows), trending (sloped trendlines), or dynamic (moving averages, VWAP). When support breaks, it commonly flips into resistance on retest (role reversal), and vice versa. Markers of a strong S/R zone include: (1) multiple touches — at least three confirmed reactions, (2) high volume in the zone — signaling concentrated trading interest, and (3) higher timeframe relevance — daily and weekly levels are stronger than 5-minute ones. Breakouts often need closing-bar and volume confirmation to filter false breaks. 'Liquidity grabs' — quick wicks below support that take out stop-losses before reverting — are a common pattern in algo-driven crypto markets.
Crypto Glossary
What are Support and Resistance?
Support and resistance are price levels at which historical buying or selling pressure has reversed direction and is expected to react again.