Definition ∞ Bearish range trading is a strategy where an asset’s price is expected to move within a lower, defined price channel. This approach involves executing trades during a period of overall market decline or consolidation, with an expectation of continued downward pressure or limited upside. Traders aim to profit from short-term price fluctuations by selling near the top of the range and buying near the bottom.
Context ∞ Bearish range trading is a common tactic employed by market participants during cryptocurrency downturns or periods of uncertainty. Understanding this strategy helps analyze market behavior and anticipate price movements. This is particularly relevant when news reports discuss sideways price action or a lack of strong upward momentum in digital asset markets.
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