Price predictions 2/11: BTC, ETH, BNB, XRP, SOL, DOGE, BCH, HYPE, ADA, XMR
Summary
Technical charts indicate Bitcoin and altcoins are consolidating to establish a new price floor following last week's sell-off. The article explores whether bulls or bears will gain dominance in this evolving market landscape.
Key Insights
What does it mean when cryptocurrencies are 'consolidating' after a sell-off?
Consolidation refers to a phase where cryptocurrency prices trade sideways within a defined range between support (price floor) and resistance (price ceiling) levels, as the market stabilizes and establishes a new equilibrium following volatility like a sell-off. This period features lower trading volume and indecisiveness between buyers (bulls) and sellers (bears), often preceding a breakout in either direction.
What typically happens after a consolidation phase in crypto markets?
Consolidation ends with a breakout or breakdown, where the price decisively moves above the resistance level (upward breakout, favoring bulls) or below the support level (downward breakdown, favoring bears), often triggered by news, volume spikes, or shifts in market sentiment, resuming a trend or starting a new one.