Bitcoin Momentum

Definition ∞ Bitcoin Momentum describes the rate at which Bitcoin’s price changes over a specified period. This market indicator helps assess the strength of recent price trends, whether upward or downward. High momentum suggests a strong continuation of the current price direction, driven by significant trading activity and investor sentiment. It is a key technical analysis metric used by traders to gauge potential future price movements.
Context ∞ Bitcoin Momentum is currently a central topic in cryptocurrency news, with analysts closely watching its trajectory following periods of significant price fluctuations. Discussions often center on whether current price trends will persist or reverse, influencing investment decisions across the digital asset space. A critical future development involves the increasing influence of institutional investment and macroeconomic factors on Bitcoin’s price action, potentially altering traditional momentum indicators.