Technical resistance refers to a price level on a financial chart where an upward trend is expected to pause or reverse due to selling pressure. This level indicates a concentration of sellers who are likely to enter the market, preventing further price increases. It is identified by analyzing historical price action and trading volumes. Overcoming resistance can signal continued upward momentum.
Context
In cryptocurrency trading, technical resistance levels are closely watched by analysts and traders to anticipate potential price reversals or consolidation phases. Breaking above a significant resistance level often serves as a bullish signal, while failing to do so can indicate a continuation of downward pressure or sideways movement. The strength of resistance is often evaluated by the number of times it has held in the past.
The crypto market is experiencing a slight downturn, with Bitcoin and the overall market cap seeing declines following the announcement of FTX's third creditor repayment.
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