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Market Momentum Shift

Definition

A market momentum shift indicates a change in the prevailing direction or strength of price movement for a digital asset or the broader market. This shift can move from bullish to bearish sentiment, or vice versa, often triggered by significant news events, technical breakouts, or changes in trading volume. Traders identify these shifts using various technical indicators, such as moving averages, relative strength index, or volume analysis. Recognizing these changes is crucial for adjusting investment strategies.