Price Thresholds

Definition ∞ Price Thresholds are specific price levels at which an asset’s value is expected to encounter significant buying or selling pressure. In cryptocurrency trading, these are often identified as support or resistance levels, where prices tend to pause or reverse direction. Traders use these points to inform their entry and exit strategies.
Context ∞ Price thresholds are a frequent subject in crypto news and market analysis, providing crucial data points for traders and investors. Reports often highlight how a particular digital asset is approaching a key psychological or technical level, which can precede significant market movements. Understanding these levels assists in interpreting short-term market dynamics and potential volatility.