Definition ∞ Short-term selling involves the liquidation of digital assets by investors who acquired them relatively recently, typically within the last 155 days. This activity is often driven by profit-taking after quick gains or panic selling during minor price corrections. It contrasts with long-term selling, which involves assets held for extended periods. Analyzing short-term selling helps assess immediate market pressure.
Context ∞ Cryptocurrency news often reports on short-term selling to explain immediate price movements and market volatility. A surge in short-term selling can indicate a lack of conviction among newer market entrants or a quick reaction to unfavorable news. This provides crucial context for understanding why an asset might experience rapid price fluctuations and helps differentiate between transient market corrections and more significant trend reversals.
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