Why crypto markets spend more time ranging than trending
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…
