Support is the price level at which demand is thought to be strong enough to prevent the price from declining further
So with Bitcoin you notice it always hovers around 44-45 because a lot of people bought at that price and continue to buy in there.
but before it ran up to 45 the next level at which we had support was around 30. So if enough people start to sell it could drop all the way down to 30
so you want episodes like this with stock where there is a pull back so it’s attractive enough for people to buy in and build at this Level
So when you have a stock that’s falling in value
It might not pay to just buy the dip
you want to be able to identify support level at which this
Stock can bounce back and then buy in there