Weak Hands Exhausted

Definition ∞ Weak Hands Exhausted describes a market phase where less experienced or less conviction-driven investors have sold off their assets, often at a loss. This selling pressure subsides as those unwilling to hold through volatility exit the market. It often signals a potential bottom or reversal point in asset prices.
Context ∞ The current market often reaches a state where weak hands exhausted after significant downturns, indicating that the majority of panic selling has concluded. This situation can precede a period of accumulation by stronger holders and a subsequent price recovery. Observing this metric provides insight into market capitulation and the shifting balance of power between different investor types.