Market Balance Recovery

Definition ∞ Market balance recovery refers to the process where a digital asset market regains equilibrium after a period of significant price volatility or imbalance. This involves a return to more stable trading conditions, often characterized by reduced price swings and a more even distribution of buying and selling pressure. It indicates a restoration of confidence among market participants. This recovery can precede new growth phases.
Context ∞ Analysts often discuss market balance recovery in the aftermath of major price corrections or speculative bubbles. News reports may highlight indicators such as declining volatility, increasing liquidity, or a stabilization of trading volumes as evidence of this recovery. Observing these signals is crucial for identifying potential shifts from bearish to more neutral or bullish market sentiments.