Short-Term Holder Exhaustion refers to a market state where investors who acquired digital assets relatively recently, typically within the last 155 days, have largely sold off their holdings due to price declines. This condition often indicates that these less experienced or less conviction-driven investors have capitulated, realizing losses. It signifies a significant reduction in the available supply from this cohort. This phase typically precedes a market bottom, as the remaining supply is held by stronger hands.
Context
Crypto news and on-chain analysis frequently cite Short-Term Holder Exhaustion as a key signal for potential market reversals. When this group has largely exited the market, it suggests that the selling pressure from immediate participants has subsided. This metric provides valuable insight into market sentiment and the resilience of the investor base.
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