Near-term resistance refers to a price level above the current market price where selling pressure is expected to be strong enough to halt an upward price movement. This level is typically formed by previous price highs or areas where a significant volume of sellers previously entered the market. It represents an obstacle that an asset’s price must overcome to continue its upward trend. Traders monitor resistance levels to identify potential profit-taking opportunities or areas where an asset might struggle to advance.
Context
In cryptocurrency trading, near-term resistance levels are key technical indicators that market analysts frequently cite in news reports to explain price ceilings. For assets like Bitcoin or Ethereum, breaking above a significant near-term resistance level can signal strong bullish momentum. Conversely, repeated failures to surpass such a level often suggest a period of consolidation or a potential price reversal.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
