Definition ∞ Leverage flush complete describes a market event where a significant number of over-leveraged trading positions have been liquidated, typically during a sharp price movement. This process removes excessive speculative exposure from the market, often leading to cascading liquidations that exacerbate price volatility. Once complete, it can indicate a cleansing of unsustainable positions, potentially setting the stage for more stable price action. It often signals a reset in market positioning.
Context ∞ The state of a leverage flush complete in cryptocurrency markets is frequently discussed as a sign of a market bottom or a temporary exhaustion of selling pressure. This situation leads to debates about whether the market has sufficiently deleveraged to support a recovery. A critical future development involves monitoring subsequent price action to confirm if the market can build a sustainable upward trend without immediate re-leveraging. This event is a key indicator for assessing market health and potential turning points.
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