Support

Support is a price level or zone where falling prices have historically stopped declining because buying interest absorbed the selling pressure. On a chart, support appears as an area where price touched down one or more times and then bounced. The idea is behavioral: buyers who missed earlier moves place orders near prior lows, and traders who sold there before may buy back, creating demand that slows or reverses a decline.

For example, if Bitcoin fell to around $58,000 on three separate occasions over two months and rebounded each time, traders would treat the $58,000 area as support and watch how price behaves on the next approach. If price instead closes decisively below it, that support is considered broken, and the same area often begins acting as resistance afterward — a pattern called a support-resistance flip.

A common misconception is that support is an exact price that guarantees a bounce; it is better understood as a zone of increased buying probability, and every support level eventually fails under enough selling. Traders therefore pair support with risk management, such as placing a stop-loss below the zone, rather than assuming the level will hold.