Definition
Support is an analytical reference, usually a zone rather than an exact guaranteed floor. Traders may identify it from prior lows, repeated rebounds, or concentrated demand. Its relevance depends on the market and timeframe being examined.
How It Works
For example, several hypothetical declines that reverse near 100 USDT may draw attention to that area. Future sellers may still overwhelm demand there. A break below followed by a failed recovery can lead traders to view the former support as resistance, but this change is not automatic.
Key Considerations
Historical reactions do not guarantee new buyers will appear. Visible bids can be canceled, and sharp moves can pass through the zone. Define what would invalidate the support idea and distinguish a brief intraperiod move from a completed-period break according to the chosen method.