← Back to GlossaryTradingLearn more in the Academy →
What is Breakout?
A breakout occurs when a cryptocurrency's price moves decisively above a resistance level or below a support level, often accompanied by high volume, signaling a new trend.
Full Explanation
A breakout is a price movement through an identified level of support or resistance, usually accompanied by increased volume. Breakout above resistance = bullish signal. Breakdown below support = bearish signal. Breakouts often follow periods of consolidation (sideways trading within a range). Key consideration: false breakouts are common — price briefly pierces a level then reverses. Confirm breakouts with: volume increase, candle close beyond the level, and retest of the broken level as new support/resistance.
Related Terms
Last updated: 2026-03-21
Translate