Definition ∞ Buyer seller balance refers to the relative proportion of demand from purchasers compared to the supply offered by vendors within a digital asset market. When buying pressure exceeds selling pressure, prices typically increase, and conversely, prices decline when selling pressure dominates. This metric provides a fundamental insight into the immediate sentiment and underlying forces influencing an asset’s price. It is a core concept for understanding market dynamics.
Context ∞ News reports frequently analyze buyer seller balance to explain current price movements or forecast potential future trends in cryptocurrency markets. A significant shift in this balance can indicate a reversal of a trend or the strengthening of an existing price direction. Monitoring this metric helps assess the overall health of the market and the conviction of its participants.
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