Spot market absorption describes the capacity of immediate delivery markets to accommodate buying pressure without experiencing drastic price increases. It indicates the depth of available supply and the willingness of sellers to meet demand at current price levels. High absorption suggests a liquid market capable of processing significant trades smoothly.
Context
In cryptocurrency news, spot market absorption is a key metric for assessing market health and the potential for sustained price rallies. When spot markets can absorb substantial buying without significant price spikes, it indicates a robust underlying demand being met by ample supply. This analysis helps determine if price movements are driven by genuine accumulation or speculative trading.
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