Selling pressure rise indicates an increase in the number or volume of digital assets being offered for sale in the market. This phenomenon leads to downward price movement as supply outstrips demand. It can be triggered by various factors, including profit-taking, investor fear, macroeconomic concerns, or regulatory uncertainty. Sustained selling pressure often precedes significant price corrections.
Context
Cryptocurrency news frequently discusses a selling pressure rise to explain why digital asset prices are declining. On-chain metrics, such as increased transfers of assets to exchanges or a growing number of short-term holders selling at a loss, often corroborate this trend. Understanding this concept provides crucial context for interpreting market downturns and anticipating further price depreciation as more participants liquidate their holdings.
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