Selling Pressure Exhaustion

Definition ∞ Selling pressure exhaustion describes a market condition where the volume of assets available for sale at current prices diminishes significantly. This indicates that most sellers who wished to liquidate their holdings have already done so. It often precedes a market rebound or a stabilization in asset prices.
Context ∞ In cryptocurrency markets, selling pressure exhaustion is a technical indicator frequently discussed in news analyses of market bottoms or periods of consolidation. When selling interest wanes, even small buying volumes can lead to noticeable price increases. This phenomenon suggests a potential shift from a bearish to a more neutral or bullish market sentiment.