Selling Pressure

Definition ∞ Selling pressure indicates a market condition where a greater number of participants are seeking to sell an asset than buy it. This imbalance leads to a downward force on the asset’s price as sellers compete to offload their holdings. It is a fundamental concept in market analysis, reflecting an inclination towards divestment.
Context ∞ In cryptocurrency markets, selling pressure is often a key factor discussed in relation to price declines or periods of stagnation. News reports frequently analyze the sources of selling pressure, which can range from large holders liquidating positions to broader market fear or regulatory uncertainty. Understanding the drivers of selling pressure is vital for interpreting market movements and assessing potential price reversals or continuations.