Demand Zones

Definition ∞ Demand zones are specific price ranges on a chart where a significant number of buyers are expected to enter the market. These areas typically correspond to historical price levels where an asset previously experienced strong buying pressure, causing its price to rebound. Traders and analysts often identify demand zones as potential support levels, indicating points where downward price movements might halt or reverse. The presence of such zones suggests an imbalance where supply is likely to be absorbed by awaiting orders.
Context ∞ In cryptocurrency trading news, discussions about demand zones frequently appear in technical analysis reports, influencing short-term market outlooks. The current market condition often sees traders observing these zones for entry points or to gauge the strength of price corrections. Future market movements around established demand zones will provide insight into investor sentiment and the asset’s underlying buying interest.