Can resistance levels be broken, and what does that mean?
Yes, resistance levels can be broken. Resistance is a price point where an asset historically struggles to rise above due to selling pressure. When the price breaks above resistance, it signals potential bullish momentum and can lead to continued upward movement. For example, if Bitcoin repeatedly fails to surpass $45,000, that becomes resistance. If it finally breaks through to $46,000 with strong volume, traders interpret this as a positive signal that buying pressure has overcome selling pressure. Breaking resistance can trigger a trend reversal or acceleration. However, false breakouts occur when price briefly exceeds resistance before falling back, so traders confirm breakouts with volume and other indicators before acting.
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