What does consolidation mean in the context of cryptocurrency trading?

1 answers

• AntreJun 07, 2022 · 3 years ago
  Consolidation is a natural part of the cryptocurrency market cycle. It's a period of time when the market is in a state of equilibrium, with supply and demand relatively balanced. Consolidation can occur at any price level and can last for different durations. Traders can take advantage of consolidation by using various trading strategies, such as range trading or breakout trading. Range traders aim to profit from buying at support levels and selling at resistance levels within the consolidation range. Breakout traders, on the other hand, wait for a clear breakout above or below the consolidation range and enter trades in the direction of the breakout. Both strategies require careful analysis and risk management to be successful.
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