Market Resistance

Definition ∞ Market resistance denotes a price level where an asset’s upward momentum is expected to stall or reverse due to an increase in selling pressure. It represents a ceiling where the number of sellers outweighs the number of buyers, preventing further price increases. Identifying these levels is a key aspect of technical analysis for trading digital assets.
Context ∞ Discussions surrounding market resistance for Bitcoin and other digital assets often revolve around historical price peaks and significant psychological price barriers. Analysts are currently observing whether key resistance levels will hold or be decisively broken, signaling potential shifts in market sentiment and future price direction.