Bearish Crypto Trading Trends: Overdue Consolidation Or Sign Of What’s Ahead? – Investing.com

trading consolidation bearish crypto overdue
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Bearish Crypto Trading Trends: Overdue Consolidation Or Sign Of What’s Ahead? – Investing.com

This article was written exclusively for Investing.com. Cryptocurrencies have gone to sleep Market consolidation is healthy Consolidation at bottom of trading range can be dangerous The case for another set of higher highs The case for lower lows Parabolic price action can be like shooting stars. It is virtually impossible to pick tops or bottoms in any market as prices often rise or fall to levels that defy logic, reason, and rationality. Trading with trends therefore tends to be an optimal approach as it respects market trajectories, price paths driven by sentiment, a powerful force. And of course, sentiment can run contrary to supply and demand fundamentals. This means therefore that at any time, the price of an asset is always the correct price because it is the level where buyers and sellers meet in a transparent environment, the market. Traders and investors often get into trouble when they believe the market price is wrong. Invariably, emotion leads to this conclusion as it is a psychological, feelings-driven response to being on the wrong side of a trend. I have experienced the most significant losses in markets, which provided the most valuable lessons when I let my ego get in the way…