In cryptocurrency trading, psychological levels refer to key price points, often rounded figures such as $10,000 or $50,000, that exert a powerful influence on trader behavior due to the emotional and psychological factors at play. These levels are seen as significant milestones in the market, often acting as psychological barriers where traders are more likely to make decisions based on collective sentiment. As a result, they can create strong areas of support or resistance, sparking increased market activity as buyers and sellers react to the perceived importance of these price thresholds.
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