Definition ∞ Crypto Consolidation describes a market phase where the price of a cryptocurrency trades within a relatively narrow range after a period of significant movement. This period often precedes another substantial price shift, either upward or downward. It reflects a balance between buying and selling pressures as market participants assess future direction.
Context ∞ Crypto news frequently reports on consolidation phases, as they are crucial for technical analysis and investor strategy. During such times, trading volumes may decrease, and market sentiment can be uncertain. Observing the duration and volume during consolidation helps analysts forecast the next price trend for digital assets.
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