Blockchain technologies have ushered in a new era of digital assets that keep growing in popularity. Cryptocurrencies are the new hot topic with enthusiasts and investors from all over the world partaking in owning and trading cryptos. In trading these digital assets, technical indicators come in handy and prove to be effective strategies for making profits. Such indicators include the resistance level. When applied and executed effectively, huge profits can be minted in the crypto realm. Moreover, newbies can leverage extensions like the Fibonacci that predict future resistance levels such as reaching 100% or 200% levels and then reacting. The resistance level is an essential indicator that sellers take advantage of and enter the market, and on various occasions, can change the price movement. As such, the resistance level is an indicator that points out where most sellers will enter the market. What is the Resistance Level? In crypto trading, the resistance level acts as the ceiling of the crypto market. It indicates that the price of a crypto asset is overvalued, as such, most traders exit their trades and take a profit. It’s basically a concentration of sell pressure that forces price levels to act as a barrier. In simpler terms, the resistance level is achieved when crypto prices increase in value fostered by seller interests. As a result, a resistance zone is forged where the crypto price halts and begins reacting. Mores...
