Psychological Price
Round or striking price level that influences trader behavior.
Beginner-friendly explanation
A psychological price is a round or memorable price level like €20,000 or $1. These levels are often watched by traders and can influence buying or selling decisions. Example: Many people wait for Bitcoin to break above €30,000 before buying. That round number acts as a psychological price.
Intermediate-level insight
Psychological prices act as cognitive thresholds. They often trigger spikes in volume or emotional reactions (fear, excitement). They're common entry/exit points for beginners and algorithms. Example: ETH gets rejected multiple times at $2,000. That level becomes a psychological resistance.
Advanced perspective
Psychological prices shape order books, liquidity zones, and market-making algorithms. Their statistical recurrence makes them hotspots for stop hunts and mass traps. Example: A bot identifies a stop-hunting zone just below $30,000 on BTC—a major psychological level loaded with passive liquidity.
Technical & Chart Analysis
psychological price, round number, key level, mental threshold, turning point, stop hunt, market behavior