Definition
Resistance is a technical analysis concept describing a price level where an asset’s upward movement has repeatedly slowed or reversed. At this level, market participants have historically been more willing to sell than buy, which can limit further price increases. It is often identified by previous highs on a price chart where rallies have stalled.
In crypto trading, resistance is used as a reference point for understanding where upward momentum has previously weakened. It does not guarantee that price will stop rising, but it marks an area where additional selling interest has appeared in the past. When resistance is clearly visible, it can shape expectations about where price advances may encounter difficulty.
Context and Usage
Resistance is commonly discussed alongside support levels, which mark areas where price has had difficulty falling below. Together, these levels outline zones where past trading activity has concentrated, helping describe how price has behaved over time. In charts, resistance is often drawn as a horizontal or sloping line connecting prior swing highs.
Because resistance reflects historical behavior, it is a descriptive concept rather than a rule the market must follow. Price can move through a resistance level if buying pressure becomes strong enough, at which point that old level may lose its significance. As market conditions change, previously observed resistance levels can become less relevant and new ones can form.