An extended consolidation phase describes a prolonged period where an asset’s price trades within a relatively narrow range. During this market condition, buying and selling pressures are largely balanced, resulting in low volatility and a lack of clear directional movement. This phase often follows significant price swings and can precede a new trend, as market participants accumulate or distribute assets without causing substantial price shifts.
Context
The current discussion around an extended consolidation phase in digital asset markets often relates to investor uncertainty regarding macroeconomic conditions or upcoming regulatory decisions. Observing volume patterns and key technical indicators during such periods is crucial for anticipating the next significant price movement.
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