Short-term selling exhaustion describes a market condition where the intense selling pressure on a digital asset diminishes significantly over a brief period. This indicates that most immediate sellers have already liquidated their positions, leading to a reduced supply available for sale. It often precedes a stabilization or rebound in price, as the downward momentum has largely subsided. This suggests a potential turning point for market direction.
Context
Crypto news frequently identifies short-term selling exhaustion as a technical indicator for anticipating market reversals or local bottoms. Analysts monitor trading volume, price action, and order book depth to confirm this phenomenon. This situation provides valuable context for understanding immediate market dynamics and investor sentiment following periods of rapid price depreciation.
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