Definition ∞ A critical price level is a specific price point for a digital asset where significant buying or selling interest is anticipated. These levels act as psychological barriers or support zones, influencing market participant behavior. They often correspond to historical highs, lows, or areas of high trading volume. A breach of a critical price level can signal a shift in market direction.
Context ∞ Many cryptocurrency news reports reference critical price levels when discussing potential price breakouts or breakdowns. Traders and analysts frequently watch these thresholds for confirmation of market trends or reversals. The interaction of price with these levels provides vital information for assessing future market movements.
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