Where Should You Place Stop Loss Bitcoin Order using Support Level and Resistance Levels in Bitcoin Trading?

A trader can use support and resistance levels on the cryptocurrency chart to determine where to place their stop loss cryptocurrency orders using the methods explained on the examples below:

Setting Stop Loss Bitcoin Order using Resistance Areas

One way of setting stop loss cryptocurrency orders is to use resistance levels, on the bitcoin charts.

Given that stop loss bitcoin orders tend to congregate at key points, when one of these resistance levels is touched by the bitcoin price, other orders are set off.

Stop Loss orders tend to accumulate just above the resistance levels.

A resistance area should act like a barrier for bitcoin price movement, this is why the resistance level are used to set stop loss orders.

If this resistance level is broken the bitcoin price movement can go towards the opposite direction of the original bitcoin trend, but if this resistance level is not broken the bitcoin price will continue moving in intended direction.

Stop Loss Bitcoin Order Level Setting using Resistance Levels in Bitcoin

Setting Stop Loss Bitcoin Order above the Resistance Level

Setting Stop Loss BTCUSD Order using Support Levels

Another way of setting stop loss cryptocurrency orders is to use support levels, on the bitcoin charts.

Given that stop loss bitcoin orders tend to congregate at key points, when one of these support levels is touched by the bitcoin price, other orders are set off.

Stop-loss orders tend to accumulate just below the support zones.

A support zone should act like a barrier for bitcoin price movement, this is why these support levels are used to set stoplosses.

If this support level is broken the bitcoin price movement can go towards the opposite direction of the original bitcoin trend, but if this support level is not broken the bitcoin price will continue moving in intended direction.

Stop Loss Bitcoin Order Level Setting using Support Zones in BTCUSD

Setting Stop Loss Bitcoin Order below the Support Level