Imbalance is a situation in the market when supply and demand for a certain asset (e.g. bitcoin or ether) do not match. Simply put, it is a moment when more people want to buy than sell, or vice versa.
Imagine that at a certain point there are many people in the market who want to buy cryptocurrency, but few who want to sell it. As a result, the price rises rapidly as buyers are willing to pay more. This creates an imbalance on the demand side.
On the other hand, if there are many people who want to sell their cryptocurrency and there are few buyers, the price drops dramatically and this is a supply-side imbalance.
It is important for traders to understand and find these moments so that they know when prices can fluctuate a lot and how to capitalize on it or protect their investments.
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