Price Weakness

Definition ∞ Price weakness refers to a condition where an asset’s market value experiences sustained downward pressure or struggles to maintain previous price levels. This indicates a lack of buying interest or an abundance of selling activity. It can manifest as declining prices, reduced trading volume on upward movements, or consistent lower highs and lower lows. This market behavior suggests a prevailing bearish sentiment among participants.
Context ∞ In cryptocurrency markets, news reports frequently analyze price weakness for specific digital assets, often linking it to macroeconomic factors, regulatory uncertainty, or project-specific developments. Identifying periods of price weakness is crucial for traders and investors to assess market health and potential future price trajectories. Such analyses help in making informed decisions regarding entry or exit points.