Range (Technical Formation)

In crypto trading, the term 'Range (Technical Formation)' refers to a price pattern where an asset's price fluctuates within a specific range between a support level (lower boundary) and a resistance level (upper boundary). This pattern indicates a period of consolidation or indecision in the market.

Examples:

1. Bitcoin trading between $9,000 and $10,000 for several weeks, forming a range-bound pattern.
2. Ethereum's price oscillating between $300 and $350 over a month, displaying a range formation.

Cases:

1. Traders may employ range trading strategies, buying near the support level and selling near the resistance level.
2. Breakouts from the range often signal a shift in market sentiment, with potential opportunities for trend-following traders.
3. Range formations can occur on various timeframes, from intraday charts to weekly or monthly periods, offering trading opportunities for different types of traders.