A breakout in cryptocurrency occurs when the price of a specific coin moves above a certain level of resistance or below a level of support. This movement is typically significant and is accompanied by high trading volume.

Breakouts are often seen as bullish or bearish signals, depending on the direction of the price movement. A breakout above resistance is considered bullish, as it indicates that buyers are in control and the price may continue to rise. Conversely, a breakout below support is seen as bearish, signaling that sellers are dominating and the price could continue to decline.

Traders often use breakouts as a signal to enter or exit a trade, as they can indicate the start of a new trend. It is important to note that breakouts can sometimes result in false signals, so it is crucial to consider other factors before making trading decisions based solely on a breakout.