Breakdown vs False Breakout
Quick comparison to help you distinguish these two crypto terms.
Breakdown
beginner
technical_analysis
A breakdown occurs when price moves decisively below a support level or key barrier, signaling that selling pressure has overwhelmed buyers and that further downside movement is likely.
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intermediate
technical_analysis
A false breakout occurs when price briefly moves beyond a key level — appearing to break out — but quickly reverses back inside the prior range, trapping traders who entered on the apparent signal.
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