Definition ∞ Short-term fluctuations describe rapid and often unpredictable price movements of digital assets over brief periods, typically hours or days. These movements are influenced by immediate market sentiment, news events, trading volume, and technical indicators. Such fluctuations are a common characteristic of volatile cryptocurrency markets. Traders frequently seek to capitalize on these quick price changes.
Context ∞ The current discussion concerning short-term fluctuations frequently addresses the impact of macroeconomic events and regulatory announcements on immediate market sentiment. Debates often involve the effectiveness of technical analysis in predicting these rapid price shifts and managing associated risks. A key development to observe is the increasing use of high-frequency trading algorithms and sophisticated analytical tools by market participants to navigate and react to these movements.
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