What are the supply and demand zones for cryptocurrencies?

1 answers

• Jan 12, 2022 · 3 years ago
  Supply and demand zones are an essential concept in cryptocurrency trading. They represent areas on a price chart where significant buying or selling activity has occurred in the past. These zones can act as magnets, attracting price towards them. When the price approaches a supply zone, it indicates that there is a higher supply of the cryptocurrency, which can result in a potential price reversal or consolidation. Conversely, when the price reaches a demand zone, it suggests that there is a higher demand for the cryptocurrency, which can lead to a potential price increase or bounce. Traders often use these zones to identify potential areas of interest for entering or exiting trades. It's important to combine supply and demand zones with other technical analysis tools to increase the probability of successful trades.
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