A resistance level in trading refers to a price point at which an asset tends to face selling pressure, making it difficult for the price to rise above that level. It is often identified through historical price charts and technical analysis, where traders observe that the asset has previously struggled to break through this price point. When prices approach the resistance level, market participants may anticipate a reversal or slowdown in price increases, leading to increased selling. Conversely, if the asset breaks through the resistance level, it could indicate a bullish trend and attract more buyers.