Definition ∞ Bull market distribution describes a phase during an upward price trend where early investors or large holders begin to sell their assets to newer market entrants. This action typically occurs as prices reach elevated levels, allowing these participants to secure profits. While the overall market sentiment remains positive, this selling activity can signal an impending shift in market dynamics or a deceleration of the upward trajectory. It represents a transfer of ownership from those who acquired assets at lower prices to those entering later.
Context ∞ News often discusses bull market distribution when analyzing the sustainability of a price rally or identifying potential peaks. On-chain metrics tracking coin age and holder behavior frequently highlight periods of increased distribution. A key discussion centers on discerning whether distribution signifies a healthy market cycle or an early warning of exhaustion in buying pressure. This helps anticipate market shifts.
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