Definition ∞ Market rejection occurs when a digital asset’s price fails to sustain a move above a particular price level or trendline. This technical analysis concept indicates that buyers are unwilling to purchase the asset at higher prices, or sellers are aggressively entering the market at that level. It often results in a sharp reversal of price direction after touching a resistance point, suggesting strong overhead supply or a lack of conviction in upward momentum. Such a rejection can signal a potential shift in market sentiment from bullish to bearish.
Context ∞ Market rejection is a widely discussed phenomenon in cryptocurrency trading analysis and news, especially when major digital assets approach significant resistance levels. Reports frequently highlight instances of price rejection as indicators of potential price reversals or the strength of certain price barriers. Traders often use this concept to identify potential entry or exit points and manage risk in volatile crypto markets.
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