What is the “Consolidation Phase” in the Crypto or Stock Market?

The Consolidation phase in crypto, stocks, or any type of trading, is a term used when stocks appear to neither go up or down in a clear pattern. Instead, the pattern goes somewhat sideways (horizontal), with the ups and downs offsetting each other.

Screenshot of a consolidation phase in the Bitcoin market
Screenshot of a consolidation phase in the Bitcoin market

In these consolidation phases, stocks are traded within a narrow range, for example, $900 to $950 which makes it hard to make a significant profit on trades (unless your investment is big), compared to normal phases, where prices could swing much more, for example, $800 to $1200 within 24 hours.


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