Resistance Breakout

Definition ∞ A resistance breakout occurs in financial markets when the price of an asset moves decisively above a previously established resistance level. This level represents a price point where selling pressure has historically overcome buying pressure, preventing further price increases. A breakout suggests a potential shift in market sentiment and the possibility of further upward price movement.
Context ∞ The current analysis of resistance breakouts in crypto markets often focuses on identifying key technical levels and the volume accompanying such moves. Discussions frequently center on whether a breakout is genuine or a false signal, necessitating confirmation from other indicators. A critical future development to watch is the application of AI to detect and validate these breakouts with greater accuracy, distinguishing true trend changes from temporary price fluctuations.