What is the difference between resistance and support levels?

Support and resistance are price levels where cryptocurrency tend to stop moving in a particular direction. Support is a price floor where buying interest typically emerges, preventing further decline. Resistance is a price ceiling where selling pressure appears, limiting upward movement. For example, if Bitcoin repeatedly bounces up at $40,000, that's support. If it consistently peaks at $45,000 before dropping, that's resistance. These levels form because traders place buy orders at support and sell orders at resistance. When a price breaks through either level with volume, the roles can reverse—broken resistance becomes new support, and broken support becomes new resistance. Understanding these levels helps traders identify entry and exit points.