Selling Pressure Saturation describes a market condition where the majority of motivated sellers have already liquidated their digital asset holdings, leading to a diminished supply available for sale. This point typically follows a prolonged period of price decline and high realized losses, indicating that the market has absorbed most of the selling volume. It often precedes a market bottom and a potential reversal in price trend. This state signifies that the market’s capacity to absorb further selling is nearing its limit.
Context
Analysts often look for signs of Selling Pressure Saturation as an indicator of an impending market recovery, frequently discussed in crypto news during bear markets. Metrics such as realized loss volume and short-term holder exhaustion can help identify this crucial phase. Reaching this point suggests that the market has cleansed itself of weak hands, paving the way for renewed accumulation.
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