Despite their reputation for volatility, crypto markets spend most of their time ranging, as liquidity cycles, leverage resets, and value discovery limit sustained trends.
Summary
- Market auction theory favors value discovery over constant trends.
- Leverage cycles repeatedly halt sustained directional moves.
- Institutional activity reinforces range-bound market behavior.
Crypto markets are often associated with explosive rallies and sharp crashes, but these headline-grabbing moments make up only a small portion of overall price behavior. In reality, cryptocurrencies spend far more time consolidating within ranges than trending in one direction.
This tendency is not…
