Accumulation Pause

Definition ∞ An accumulation pause signifies a phase in market activity where the buying pressure for a digital asset temporarily diminishes following a period of sustained acquisition. During this time, the asset’s price typically consolidates or trades within a narrow range. This market behavior often indicates that large purchasers are evaluating new information or awaiting further market signals. It represents a temporary equilibrium between supply and demand.
Context ∞ Analysts frequently monitor accumulation pauses in cryptocurrency markets as potential indicators of future price movements. Such pauses can precede either a continuation of the prior uptrend or a reversal, depending on underlying market sentiment and external catalysts. News reports often highlight these periods when discussing investor conviction and the short-term outlook for digital assets.