Definition ∞ Selling pressure climax refers to a market event characterized by an intense, rapid surge in selling activity, often leading to a sharp price decline followed by a swift rebound. This indicates a potential exhaustion of sellers, as most participants willing to liquidate have already done so. It signifies a point of maximum bearish intensity. This event often precedes a market recovery.
Context ∞ In cryptocurrency markets, a selling pressure climax is frequently interpreted as a signal that a market bottom is near, as most participants willing to sell have already done so. News reports often highlight such events as key turning points for market sentiment. This indicator provides critical insight into the psychological state of the market.
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