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Author: Admin | 2025-04-27
Price went up overall during this timeframe. On the other hand, if the candle is red, it means that the closing price was lower than the opening price, so the price went down.In the image above, the opening price of the green candle is the wide-bottom part of the candle, the closing price is the wide-top part of the candle, and the highest and lowest trades within this timeframe are on the tips of the candle.When we’re in a bull market, most of the candlesticks will usually be green. If it’s a bear market, most of the candlesticks will be red.Bull and Bear MarketsThese terms are used to indicate the general trend of the chart, whether it’s going up or down. They are named after these animals because of the ways they attack their opponents.A bull thrusts its horns up into the air while a bear swipes its paws downward. So these animals are metaphors for the movement of a market: if the trend is up, it’s a bull market. But if the trend is down, it’s a bear market.Resistance and Support LevelsWhen looking at market graphs such as OHLC, it may seem as though Bitcoin’s price cannot break through certain highs or lows. For example, you can witness Bitcoin’s price go up to $10,000 and then appear to hit a virtual “ceiling” and get stuck at that price for some time without breaking through it.In this scenario, $10,000 is the resistance level – a high price point Bitcoin is struggling to beat. The resistance level is the outcome of many sell orders being executed at this price point, which is why the price fails to break through at that specific point.Support levels, in a sense, are the mirror image of resistance levels. They look like a “floor” that Bitcoin’s price can’t seem to go below when the price drops. A support level will be accompanied by a lot of buy orders set at that price level. The high demand of buyers at that support level cushions the downtrend.Generally, the more frequently the price has been unable to move beyond the support or resistance levels, the stronger these levels are considered.Interestingly, both resistance and support levels are usually set around round numbers, e.g., 10,000, 15,000, etc. The reason for this is that many traders tend to execute buy or sell orders at round-numbered price points, thus making them act as
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