Definition ∞ Holder selling fatigue describes a market condition where long-term holders of a digital asset cease selling their holdings despite adverse price movements. This occurs when the pool of potential sellers who are willing to exit their positions has largely diminished. It indicates a strong conviction among remaining holders, suggesting that much of the available supply has moved into stronger hands. This phenomenon often precedes a price reversal or a period of accumulation.
Context ∞ News analyses often cite holder selling fatigue as a bullish indicator in cryptocurrency markets. When on-chain data shows a reduction in selling activity from addresses that acquired assets at higher prices, it can signal a market bottom. This situation suggests that the market has absorbed significant selling pressure, and a recovery may be imminent. Observing this metric provides insight into the psychological state of market participants and potential shifts in market structure.
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