#AltcoinBreakout

#AltcoinBreakout

What does this term mean?

The term Altcoin Breakout is used in the world of cryptocurrencies to refer to a moment when there is a sharp and sudden increase in the price of an alternative cryptocurrency (Altcoin), after a period of stability or sideways trading. An "Altcoin" is any cryptocurrency other than Bitcoin, such as Ethereum, Solana, Cardano, and others.

The "Breakout" usually occurs when the coin surpasses an important technical resistance level, which is the price that previously prevented it from rising. Once this barrier is broken, buyers enter strongly, pushing the price up significantly over a short period.

This breakout may be the result of:

Positive news about the project or an important technical update.

A general market rise led by Bitcoin, followed by momentum shifting to alternative coins.

The entry of whales (large investors) who buy huge amounts of the coin.

Practical example: If the coin "AVAX" has been trading at $10 for weeks and then suddenly rises to $12 or $15 within two days, this is considered an Altcoin Breakout.

It is important for traders to realize that such breakouts can be a great opportunity for profit, but they can also be followed by sharp corrections, so it is essential to combine technical analysis with proper risk management.