📚 QUICK CLASS: UNDERSTANDING BREAKOUTS IN THE CRYPTO MARKET

Want to learn how to identify when a breakout is real and avoid falling into chart traps? Then this post is for you! 👇

🔍 1. What is a breakout?

It's not just when the price “jumps” on the chart. A true breakout occurs when the price surpasses an important support or resistance level, with enough strength to continue rising (or falling).

💡 Behind this, the following may be happening:

Large investors entering the market

Stop orders being activated

A shift in the overall sentiment of traders

⚔️ 2. Types of breakouts

✅ Real breakout:

Occurs with strong volume, maintains the movement, and makes sense within the trend. It's the one that “goes away” and doesn't come back.

❌ False breakout:

It's the famous “break and return.” It looks like it’s going to rise, but it’s just a trap. Many people enter, the price returns, and only those with patience benefit later.

🔎 3. How to know if the breakout is reliable?

Keep an eye on these signs:

📈 Volume increasing at the time of the breakout

✅ Candle closing outside the resistance/support zone

🔄 Upward structure (higher highs and higher lows)

📉 Pullback confirming the breakout (test of the broken level)

🧘‍♂️ Indicators without signs of exhaustion (e.g., RSI without divergence)

🚫 4. Mistakes beginners make (and that are costly):

⚠️ Trusting a breakout within a long sideways zone

⚠️ Trading before the candle closes

⚠️ Breakout without volume

⚠️ Entering without knowing where to exit (lack of strategy)

🧠 FINAL TIP:

“Not every breakout is an opportunity. But the real ones leave clues. Those who know how to read, enter before the majority.”