Sell Pressure Absorption

Definition ∞ Sell pressure absorption refers to the market’s capacity to take on selling orders without a significant decline in asset price. This phenomenon occurs when there is sufficient buying demand to offset the volume of assets being sold. It indicates underlying strength in the market and a willingness of buyers to acquire assets at current price levels. High absorption can prevent sharp price drops.
Context ∞ In cryptocurrency news, sell pressure absorption is a key metric discussed by analysts when evaluating the resilience of digital assets during market downturns or after large sell-offs. Reports often highlight instances where Bitcoin or other altcoins demonstrate strong absorption, indicating sustained investor interest despite negative sentiment. This capacity suggests a robust support level and potential for price stabilization or recovery. Understanding sell pressure absorption helps gauge market conviction and potential future price movements.