Selling into Strength

Definition ∞ Selling into strength describes the strategy of divesting assets during periods of rising prices or strong market momentum. This approach allows sellers to realize profits at favorable prices when demand is high, often before a potential market reversal or correction occurs. It is a tactic employed by experienced traders and long-term holders to optimize their exit points. While it can contribute to short-term price resistance, it often reflects a calculated decision to capitalize on current market conditions.
Context ∞ Crypto news often reports on “selling into strength” when discussing profit-taking by large investors during bull runs. This behavior is closely monitored as it can indicate a shift in market dynamics, signaling that upward momentum may be weakening. The current market analysis frequently examines the extent of this selling to determine if it represents healthy market rebalancing or a precursor to a more significant downturn.