Sell Dominance

Definition ∞ Sell dominance describes a market condition where selling pressure consistently outweighs buying pressure, leading to sustained price depreciation. This phenomenon is characterized by a higher volume of assets being sold at the bid price compared to assets bought at the ask price, indicating aggressive liquidation by market participants. It often results in a downtrend in asset prices and a general pessimistic sentiment among investors. Analyzing order book depth and trade execution data helps confirm the presence of sell dominance.
Context ∞ Cryptocurrency news frequently identifies periods of sell dominance to explain market downturns, highlight bearish trends, or predict further price declines. Understanding when selling pressure is prevailing helps investors gauge market sentiment and adjust their strategies accordingly. This condition often persists until a significant shift in market psychology or fundamental factors occurs.