Key Resistance

Definition ∞ ‘Key Resistance’ refers to a price level in financial markets where an asset’s upward movement is historically expected to encounter significant selling pressure, preventing further price increases. This level is identified through technical analysis of past price charts. Breaking through key resistance levels often signals a potential shift in market sentiment or trend.
Context ∞ Analysts frequently discuss ‘Key Resistance’ levels for Bitcoin and other major cryptocurrencies when assessing potential price ceilings or points where a trend might stall. News highlighting a cryptocurrency approaching or testing a significant resistance level often precedes periods of increased volatility or consolidation. The ability of an asset to overcome these price barriers is a critical factor in determining its potential for further appreciation.