Price Support Floor

Definition ∞ A price support floor is a specific price level below which an asset’s value is unlikely to fall due to strong buying interest. In digital asset markets, this technical analysis concept represents a significant demand zone where a large number of buyers are willing to acquire an asset, thereby preventing further price depreciation. This level often corresponds to previous resistance points that have been overcome, psychological thresholds, or areas of high investor cost basis. A strong support floor indicates underlying market confidence and can act as a rebound point during corrections.
Context ∞ Crypto news and market analyses frequently refer to price support floors when discussing potential market bottoms or rebound opportunities for cryptocurrencies like Bitcoin or Ethereum. The debate often involves identifying the true strength and durability of these support levels amidst market volatility. Watching for increased trading volume at these levels can confirm their significance and indicate a potential reversal of downward momentum.