Price Ceiling

Definition ∞ A price ceiling represents a specific price level that an asset has repeatedly failed to surpass over a given period. This level acts as a resistance point where selling pressure consistently increases, preventing further upward movement. It indicates a psychological or technical barrier for market participants.
Context ∞ In cryptocurrency markets, a price ceiling can be a significant technical indicator for traders and analysts. Breaking above such a level often signals a strong bullish momentum, while continued rejection confirms its strength as resistance. News analysis frequently references these levels to forecast potential price movements and assess market sentiment for digital assets.