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Structural Imbalance

Definition

Structural imbalance describes a persistent disequilibrium within a market, often characterized by a sustained disparity between buying and selling pressure that is not easily corrected by normal market mechanisms. This can result from significant shifts in fundamental supply and demand dynamics, large-scale accumulation or distribution by major holders, or regulatory changes. Such an imbalance can lead to prolonged price trends in one direction. It represents a fundamental shift in market forces.