Loss selling exhaustion describes a market condition where the majority of investors who were inclined to sell their assets at a loss have already executed those sales. This typically occurs after a prolonged downturn, suggesting that the remaining holders possess a stronger conviction or are unwilling to sell at current prices. It can signal a potential bottoming out of the market or a significant reduction in downward price pressure. This state often precedes a market stabilization or recovery phase.
Context
On-chain analysis frequently utilizes metrics like Realized Profit/Loss to identify periods of loss selling exhaustion in cryptocurrency markets. News commentary often references this concept when discussing market capitulation events or the search for a definitive market floor. Identifying this phase is significant for traders and analysts seeking signs of a potential market reversal.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
