What are support and resistance levels?

I have been trading in crypto for years and these famous support and resistance levels are my daily bread. I'll share my experience with them, without technical jargon.

Support and resistance levels are like those invisible lines where all traders seem to agree to buy or sell. It's fascinating to see how they work. I use them constantly for my entries and exits in the market, although sometimes they have brutally betrayed me.

In downturns, support is like that friend who catches you when you're about to fall. I've seen prices bounce off these levels like balls, saving my positions when I thought all was lost. Demand exceeds supply and boom! bounce.

In the uptrends, the resistance is that damn wall that won't let you keep climbing. Sometimes I get frustrated watching how my favorite altcoin crashes time and time again against that ceiling. It takes several attempts and a lot of volume to break it. How many times have I sold out of frustration just before a big breakout...

Collective psychology is the key. Fear, greed, FOMO... we all place orders at similar levels, creating those high liquidity zones. It's not magic, it's predictable human behavior. And I myself constantly fall into those psychological traps.

Do you want to know if a level is strong? Take a look at:

• How many times has the price touched it without breaking it. More touches = more reliability.
• Round numbers are magical. Bitcoin at €10,000, €20,000... people love round figures!
• If a level acted as support and then as resistance ( or vice versa ), that level is pure gold.

Don't pay attention to any platform that tells you this is infallible. I have lost money blindly trusting these levels. Use them with other indicators and your own judgment.

And remember: in crypto, even the best supports can break when you least expect it. I've learned it the hard way.