A seller exhaustion signal is a technical analysis indicator suggesting that selling pressure in a market is diminishing, potentially preceding a price reversal upwards. This signal often appears after a prolonged downtrend, characterized by decreasing trading volume during price dips and a reduction in large sell orders. It indicates that most willing sellers have already liquidated their positions.
Context
Crypto news and market commentary frequently reference seller exhaustion signals as a sign that a market bottom may be near, offering opportunities for buyers. Traders monitor these indicators to anticipate shifts in market momentum and potential rebound scenarios. Understanding this signal helps in assessing the cyclical nature of digital asset price movements.
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