Technical Chart Breakdown

Definition ∞ A technical chart breakdown occurs when the price of a financial asset falls decisively below a previously established support level on a technical analysis chart. This event typically signals a shift in market sentiment from bullish to bearish, indicating that selling pressure has overcome buying interest at that price point. A breakdown suggests a high probability of further downward price movement. It is a critical indicator for traders assessing market direction.
Context ∞ Technical chart breakdowns are closely watched events in cryptocurrency market news, often triggering increased selling activity and market volatility. Analysts frequently discuss these breakdowns in their reports, interpreting them as confirmations of bearish trends or potential capitulation events. The significance of a breakdown is often amplified by trading volume, with higher volume confirming the validity of the price movement.