Definition ∞ Seller exhaustion is a market condition indicating that the selling pressure for an asset has significantly diminished. This often occurs after a prolonged period of price decline, suggesting that most potential sellers have already exited their positions. A state of seller exhaustion can precede a price reversal or a period of consolidation. Recognizing this pattern is important for market analysis.
Context ∞ Current market analysis frequently references seller exhaustion as a potential indicator of an upcoming price bottom or stabilization. Discussions often involve the correlation between declining trading volumes and a decrease in downward price momentum. Analysts are monitoring on-chain metrics and order book depth for confirmation of reduced selling conviction.
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