Choppy Action describes a market condition characterized by frequent, small price fluctuations without a clear directional trend. This term indicates periods of indecision where asset prices move erratically within a narrow range. Such market behavior often suggests a lack of strong conviction among market participants.
Context
In cryptocurrency markets, Choppy Action frequently arises during periods of low trading volume or significant macroeconomic uncertainty. Traders often find these conditions challenging for trend-following strategies, favoring short-term, range-bound approaches instead. A critical aspect to watch for is how market liquidity and external news events influence the duration and intensity of such non-trending price movements.
The crypto market is experiencing a downturn due to escalating regulatory concerns, a derivatives market deleveraging, and key technical levels breaking.
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