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What is Retest in Cryptocurrency Markets?

It refers to the fact that the chart of a cryptocurrency asset touches the same point again after breaking at the support or resistance points. After the graph touches this point, it continues to move in the direction of the breakdown.


How does the retest take place?


Support and resistance points are the lowest and highest points that prices can reach. If these points are exceeded, the support point turns into the resistance point and the resistance point turns into the support point. Accordingly, when there is a return to a broken support or resistance point, the relevant cryptocurrency asset is tested.


Retest and Fake-Out


Fake-out means that a transaction is executed with the expectation of a price movement that is expected to occur, but the expected movement does not occur. Retest is one of the methods used by investors in order to minimize the possibility of a fake-out situation.