The consolidation of the cryptocurrency market refers to a period during which the price of cryptocurrencies experiences reduced volatility and enters a relatively stable state.

During the consolidation period, the forces of buyers and sellers are relatively balanced. From a technical analysis perspective, prices typically fluctuate within a certain range; for example, the price of Bitcoin may repeatedly oscillate within a specific price range, such as between $25,000 and $30,000. This may be due to various factors, on one hand, market participants temporarily have not reached a new consensus on its value, with both bulls and bears waiting for new information to break the balance, such as new regulatory policies, large financial institutions' new initiatives regarding cryptocurrencies, or significant technological changes. On the other hand, after a substantial rise or fall in the earlier period, the market also needs time to digest these changes.