Definition ∞ Bearish momentum indicates a sustained downward pressure on an asset’s price, suggesting a prevailing selling interest. This condition reflects a market where sellers are more dominant than buyers, leading to consistent price depreciation. It is characterized by declining prices, often accompanied by increasing trading volume during downward movements. Such market dynamics can persist over various timeframes, from short-term corrections to prolonged downturns.
Context ∞ Reports of bearish momentum frequently discuss factors such as negative macroeconomic data, regulatory uncertainty, or significant sell-offs by large holders. Traders and analysts often monitor technical indicators like moving averages and volume profiles to confirm the presence and strength of this market condition. Understanding bearish momentum is crucial for assessing risk and formulating defensive strategies in digital asset markets.
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