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Always measure your risk and be okay with being wrong ; )
In more liquid markets (i.e. currencies, stocks, futures, etc.), these levels tend to hold better as they are often made by banks and institutions as opposed to crowds of people (which make up most of the crypto world). The idea is that when the market comes back to test these price levels, a similar action will be taken by the market. That is, if we can find an area where there was a lot of buying in the past, when the market drops down and offers a discount, those buyers who made the initial push up may be looking to buy once again and, hence, continue to move the market up from that price level.
This works on the sell side as well, too. However, because the crypto moves have been mostly Up, there are more demand levels in play currently than supply levels.
I hope that this has helped you understand a little bit more about my way of looking at things. Happy trading and keep in touch. Thank you again for commenting!
That is all, my friend, and Thank you for your comment!