Definition ∞ Sell-side easing describes a reduction in selling pressure for an asset in financial markets. In the digital asset space, this indicates that fewer holders are actively liquidating their positions, leading to a diminished supply available for purchase. This condition often precedes or accompanies price recoveries, as the decreased supply meets consistent or rising demand. It reflects a shift in market sentiment where participants become less inclined to divest their holdings, suggesting growing confidence.
Context ∞ Sell-side easing is a significant technical indicator for cryptocurrency analysts, suggesting that a market bottom may be forming or that accumulation is occurring. Observing on-chain metrics, such as exchange balances and long-term holder behavior, can provide evidence of this phenomenon. A sustained period of sell-side easing is generally considered a constructive sign for the future price action of a digital asset.
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