Pressure

Definition ∞ Pressure, in a market context, refers to the forces that influence the price of a digital asset, often indicating a tendency towards upward or downward movement. This can stem from a confluence of factors including trading volume, order book depth, news sentiment, or macroeconomic conditions. It signifies a state where market participants are exerting influence on asset valuation.
Context ∞ Market observers frequently discuss ‘pressure’ when analyzing price action, identifying potential turning points, or assessing the strength of a prevailing market direction. Understanding the sources of this pressure, whether from large sell orders, liquidations, or shifts in investor sentiment, is key to interpreting market movements.