Selling Pressure Exhausted

Definition ∞ Selling pressure exhausted describes a market condition where the majority of participants intending to sell a digital asset have already done so, leading to a significant reduction in downward price momentum. This state often precedes a stabilization or reversal of price trends, as the supply from sellers diminishes. It signals a potential end to a downtrend.
Context ∞ News reports frequently identify signs of selling pressure exhausted as a key indicator of a market bottom or an impending price recovery. Metrics such as declining trading volume during price dips or reduced outflows from exchanges can suggest this condition. Recognizing this exhaustion provides important context for understanding market turning points.