Support
A price level with significant buying interest that prevents further declines.
What is Support?
Support is a price point in digital asset trading where buy orders cluster, absorbing sells and halting drops, often visible as buy walls in order books. For BTC, support at $25,000 might hold if historical data shows rebounds there. Traders place buys near support for optimal entries.
It forms from psychological levels or past lows, like Bitcoin’s $59,800 with 50 BTC buys. Breaking support can lead to further falls, turning it into resistance. High liquidity at support minimizes slippage during volatility.
Related Terms
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Stop Order
An order that triggers a market order when an asset reaches a specified stop price to manage risk.
Funding Rate
A periodic fee exchanged between long and short traders to balance market positions.
Leverage Ratio (MSTR)
A measure of debt relative to assets or equity, in Strategy's case (Debt + Preferred)/Market Cap.
IMF Stablecoin Guidance
International Monetary Fund's recommendations on regulating stablecoins to balance innovation with risks in global finance.
Flash Loan
A type of uncollateralized loan in decentralized finance (DeFi) that is borrowed and repaid within a single blockchain transaction.