Definition ∞ Derivatives sell pressure describes a market condition where a significant volume of cryptocurrency derivatives contracts, such as futures or options, are being sold, leading to downward price influence on the underlying spot asset. This selling activity can stem from hedging strategies, liquidation events, or bearish market sentiment among derivatives traders. It reflects a collective expectation of declining prices or a need to reduce risk exposure.
Context ∞ This metric is frequently analyzed in crypto news to forecast potential price movements in the spot market. High derivatives sell pressure can signal an impending price correction or a continuation of a downtrend, providing traders and investors with an indicator of market weakness and risk.
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