What is Retest in Cryptocurrency Markets?

Retest refers to the fact that the chart of a cryptocurrency asset touches the same point again after it breaks at support or resistance points. After the graph touches this point, it continues to move in the direction of the breakdown. In this article, you can find the answer to the question of what is retest.

⚠️ Important Notice: This article is not investment advice. The concepts used by the investors who apply the technical analysis method have been compiled from the literature and given in this article.

What is Technical Analysis?

Technical analysis is a method used to predict the future movements of the market by looking at the past price charts of cryptocurrencies and using numerical indicators such as price movements or volume changes on this chart.

What is Retest in Cryptocurrency Markets?

Retest means that the value of a cryptocurrency breaks after it reaches support or resistance points, and after this break, the graph touches the same points again. The realization of a retest on a cryptocurrency chart is also interpreted as the confirmation of this cryptocurrency asset.

How Does Retest Happen?

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. One of the methods used by investors to minimize the possibility of fake-out is retest.