Break-even transactions are those where the sale price of an asset precisely matches its original purchase price, after accounting for any associated trading fees. Investors realize neither a gain nor a loss on these specific trades. This point frequently represents a psychological threshold for many market participants. It can exert influence on subsequent buying or selling decisions.
Context
Observing a high volume of break-even transactions can signal significant price resistance or support levels within the market. Many investors who acquired assets at higher prices may opt to sell once the asset returns to their initial entry point. This phenomenon can consequently generate concentrated selling pressure at particular price thresholds.
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