Consolidation in crypto trading: explained

In crypto trading, consolidation refers to a period of relatively stable prices for a cryptocurrency after a period of significant price movement. During consolidation, the price of the crypto assets tends to trade within a relatively narrow range, without experiencing significant price swings in either direction.Consolidation can be identified on a price chart by a period of sideways movement, with the price of the cryptocurrency trading within a range of support and resistance levels. Traders often look for signs of consolidation as a potential opportunity to enter a trade, as it can indicate that the market is preparing for the next move.

It's important to note that consolidation can be followed by either a bullish or bearish price movement, and it can be difficult to predict which direction the price will move next.