How do I identify support and resistance levels on a price chart?

Support and resistance levels are price points where an asset frequently stops or reverses direction. Support is a price floor where buying interest typically emerges, preventing further drops. Resistance is a ceiling where selling pressure builds, stopping upward movement. To identify them, look at historical price charts and mark horizontal lines where the price has bounced up (support) or bounced down (resistance) multiple times. For example, if Bitcoin repeatedly recovers at $42,000 after dipping, that's support. If it consistently sells off near $48,000, that's resistance. These levels become stronger when tested multiple times. You can also use candlestick patterns, volume spikes, and moving averages to confirm these zones. Many traders use these levels to plan entry and exit points for their trades.