Short-Term Downside

Definition ∞ Short-Term Downside represents the potential for a decrease in an asset’s price over a brief period. This risk is typically driven by immediate market sentiment, technical indicators, or unexpected news events. It is a consideration for traders and investors with short-range time horizons.
Context ∞ In crypto news, Short-Term Downside is frequently discussed in relation to immediate market volatility and potential profit-taking by traders. A critical factor influencing this downside is the presence of high leverage in the market or negative macroeconomic announcements. Analysts often examine order book depth and derivative funding rates to assess the immediate risk of price depreciation.