Definition ∞ Short term fatigue refers to a temporary exhaustion of buying or selling pressure in a market, leading to a pause or reversal in recent price trends. This condition often precedes a period of consolidation or a modest correction before the dominant trend resumes. It reflects a temporary lack of conviction among participants.
Context ∞ In volatile digital asset markets, short term fatigue is a common observation among traders, indicating that a rapid price movement may be losing momentum. Technical analysts often look for specific chart patterns or volume declines to identify this condition. Understanding short term fatigue helps in making tactical trading decisions and anticipating brief market pauses.
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