Definition ∞ In technical analysis of financial markets, critical support levels represent specific price points where a downward trend is expected to pause or reverse due to concentrated buying interest. These levels indicate a price floor where demand is strong enough to absorb selling pressure. When an asset’s price approaches a critical support level, traders often anticipate a rebound. Breaking below such a level can signal further price declines.
Context ∞ In cryptocurrency news, discussions about critical support levels are common during periods of market downturns or consolidation. Analysts frequently reference these levels to predict potential price reversals or continued bearish movements for digital assets like Bitcoin or Ethereum. Monitoring whether these levels hold or break provides crucial insights for traders and investors assessing market health. Observing these technical indicators helps market participants gauge the strength of current price trends.
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