Definition ∞ Market momentum constrained describes a market state where the upward or downward force driving asset prices is limited or weakening, resulting in sideways price action or a struggle to maintain a clear trend. This indicates a balance between buying and selling pressure, preventing significant price movements. It often precedes a breakout or breakdown once a dominant force emerges.
Context ∞ News reports often describe market momentum as constrained when discussing periods of consolidation or uncertainty in digital asset markets. This condition can frustrate traders seeking clear directional moves and prompts analysts to look for catalysts that might resolve the equilibrium. Understanding constrained momentum helps in assessing the likelihood of impending volatility or prolonged stability.
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