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Breakout Meaning

A breakout occurs when an asset’s price moves decisively above resistance or below support, signaling a potential shift in market structure. In crypto trading, breakouts are closely watched because they often precede strong directional moves.

Key characteristics of a valid breakout include:

Upward breakouts suggest buyers have overwhelmed sellers, while downward breakouts indicate growing selling pressure. However, not all breakouts succeed-false breakouts occur when price briefly crosses a level before reversing.

Because crypto markets are volatile, traders often combine breakout strategies with volume analysis, RSI, or trend confirmation to reduce risk.

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