Support
What is a support level, and what does it tell you when a falling market stops at a price it has bounced from before?
In plain words
Support is a price level where buying interest has historically appeared strongly enough to halt a decline. It is not a fixed wall but a zone where prior buyers, many of them remembering earlier purchases near that price, tend to step back in.
Why it matters
Traders watch support because a level that has held once may hold again, offering a reference point for where selling pressure was previously absorbed. A decisive break below support suggests that the earlier buyers are exhausted or no longer present, and the level may then act as resistance on any rebound.
In a real week: BTC, week of 15 February 2021
In the week of 15 February 2021, BTC opened at 48580.47 and fell to a low of 45570.79 at 02:00 UTC on Monday, early in the week's range, with the high forming afterwards. The decline stopped at that low: BTC closed the week at 57408.57, up 18.17%, finishing in the upper third of its range. The week's low was recorded at 45570.79, and one possible reading is that buying interest reappeared there; the data itself shows only the price and time of the low.
A common mistake
Treating support as an exact, permanent price line. It is a zone that can shift or fail entirely, and a level holding once does not guarantee it holds again.