Definition ∞ Overhead resistance, in technical analysis, refers to a price level or zone where an asset’s upward movement is typically met with selling pressure, preventing further price appreciation. This occurs because a large number of past buyers at or near that price are now seeking to sell their holdings to break even or take profits. It acts as a ceiling for price action.
Context ∞ In cryptocurrency market analysis, overhead resistance levels are frequently discussed in news reports and technical commentaries. Analysts identify these zones using historical price charts to predict potential turning points or areas where an asset might struggle to advance. Breaking through significant overhead resistance is often viewed as a bullish signal for future price action.
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