Sell Pressure

Definition ∞ Sell pressure describes the force exerted by a greater volume of sellers than buyers in a market. This imbalance leads to a downward trend in asset prices as sellers compete to liquidate their holdings. It is a key indicator of bearish sentiment within a trading environment.
Context ∞ Sell pressure is a constant factor analyzed in cryptocurrency market news, particularly during periods of price decline or increased volatility. Reports often discuss the drivers of sell pressure, such as macroeconomic events, regulatory uncertainty, or significant token unlocks. The ongoing discussion revolves around identifying the sources of this pressure, whether from retail investors exiting positions, large holders liquidating, or automated trading strategies reacting to market signals.