Technical Advancement! Understanding Several Methods of Support and Resistance Levels

Today, I will try to share with everyone the commonly used support and resistance tools. The most commonly used ones are these: chip distribution, Fibonacci retracement tool, BOLL, and MA. What hot coins did everyone buy last week? Let's dive into practical analysis, discussing one tool at a time. In the discussion area, you can mention the coins you want to analyze, and we will examine them one by one.

Alright, for the first round, let's use chip distribution to look at these: ETH, ZEC, BTC, SNDK.

First, let's analyze ETH and find support and resistance using chip distribution.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image1 You can also select chip distribution like I do and choose ETH as the target. Friends who are not very familiar with chip distribution can take a look at the panel below.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image2 The core of chip distribution focuses on two things: the label line and the chip peak. The label line represents the market's overall average holding cost, while the chip peak indicates the area where trading is most concentrated. The place where funds gather corresponds to the strongest support or resistance levels.

Let’s take a real-time look at ETH's current situation; everyone can see the image I posted.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image3 This is the complete chip structure since the high point of 4958 USD last year. Over the past year, the market's average chip is 1886. In my personal view, ETH's solid bottom is currently 1886.

This wave has come out of the bear market and has established new support, which is at the position of the upper chip peak. From the chip peak perspective, 2330 is the new strong support.

Additionally, the recent positive news from Robinhood is also leaning towards ETH. From both the fundamental and chip perspective, the risk-reward ratio for going long is very favorable.

The upper resistance has a lot of room for upward movement, roughly seeing around 2900.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image4 Simply put: the downside is limited, while the upside has enormous potential. ETH at this position is very good. Furthermore, there is another layer of support below, where chips are very dense, providing strong support against declines.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image5 ETH is currently like building a skyscraper: the foundation is particularly solid, and the volume is sufficient for a very stable high-rise to emerge. I will find a time to explain the use of chip distribution in detail. Today, the main focus is on helping everyone find support and resistance, mastering how to use tools to identify key points.

ETH's chip analysis is complete. How does everyone feel? You can refer back to what I just mentioned; these levels are not my personal assumptions but are data generated by the chip distribution tool. If you want to see it in more detail, you can pull up the chip distribution yourself. To summarize: currently, the support is strong, the downside is small, and the upside is large.

Having finished the first one, let's continue and look at ZEC. Honestly, I used to really like ZEC. During the last bull market, I spent a lot of effort studying privacy coins like ZEC, XLM, and DASH. At that time, I always felt that blockchain investment needed to be in privacy chains, the kind that transfers quietly. After this round of bull and bear market washout, my thoughts have changed.

Without further ado, let’s continue to look at ZEC, which everyone is concerned about. ZEC has surged too much this time, and the chip distribution reference is not that strong right now. Its only function is to see where the support is at the moment; future space is not very clear. There is a key level to remember, but it is too far from the current price, so its reference value is limited.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image6 For friends doing short-term trades with ZEC, we will use BOLL for analysis later, as BOLL is more friendly for short-term support and resistance. I’ll show you a short-term view of ZEC. If you are looking to short, pay attention when the price is around 1016.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image7 From chip distribution, the 5-minute level has already fallen below the chip support, and this level has turned into resistance. Short-term shorts should consider whether to take profits near 1016.

Next, I will quickly cover the chip analysis for BTC and SNDK, and then I’ll give out memberships. By the way, I also organized a few good targets from Robinhood, and after the draw, we will analyze them together to find opportunities for support and resistance and see if there are any high-probability investment opportunities.

First, let's look at BTC. I remember analyzing it for everyone last time; currently, from the chip distribution perspective, the conclusion hasn’t changed: it has stabilized at the support of 79,000, and the next resistance level is at 89,000, with very little chip resistance in between. If it falls below the support of 79,000, the next strong support is at 64,000.

However, like ETH, BTC has a very solid foundation at its bottom, making it hard to fall, while moving upwards is relatively easy. Do you remember the last time I said around 69,000 in the live stream that the bottom 64,000 is a strong support, and the upward potential can reach 77,000? This was also analyzed using chip distribution in the live stream on August 20. Again analyzing BTC and chip distribution, the conclusion remains the same: the upper space is greater, and the foundation below is solid, making it relatively more likely to profit from going long.

Next, let's look at SNDK, which everyone is concerned about.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image8 From the chip peak and label line perspective, they basically overlap; the average chip cost is 1596. The data is here, making long positions more suitable. The support is at 1596, so everyone can calculate their liquidation price. Of course, if negative news comes, you can also consider going short, and by the time it reaches around 1596 or 1600, you should think about taking profits. Where the chip cost is, that’s where the support and resistance lie; we let the data and evidence speak for themselves. The 1-hour level also has support at this position.

Technical Advancement! Understand Support and Resistance Levels Methods_aicoin_Image9 There are daily live streams now, welcome to continue following the AiCoin buddies! Reserve in advance 👇