Definition ∞ A holding pattern describes a period where an asset’s price trades within a relatively narrow range, showing limited directional movement. This phase often occurs after a significant price change, as market participants assess new information or await further catalysts. It represents a temporary equilibrium between buying and selling pressures.
Context ∞ In cryptocurrency markets, a holding pattern can precede either a continuation of the previous trend or a reversal, making it a critical period for technical analysis. On-chain data might show reduced transaction activity or stable investor behavior during these times. News events or macroeconomic developments can disrupt this pattern, leading to a new directional price action for digital assets.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
