Definition ∞ The Bitcoin Market Bottom represents the lowest price point reached by Bitcoin during a specific market cycle or downturn, before a sustained recovery begins. This level indicates the maximum extent of selling pressure and capitulation among market participants. Identifying this point is crucial for investors seeking to acquire assets at their perceived lowest valuation. It often follows prolonged periods of price decline and negative sentiment.
Context ∞ Discussions around the Bitcoin Market Bottom are central to cryptocurrency news during bear markets. Analysts frequently employ various on-chain metrics and technical indicators, such as the MVRV ratio or dormancy flow, to predict when this low might occur. The market often exhibits signs of extreme fear and reduced trading activity leading up to a bottom. A confirmed market bottom typically precedes a period of accumulation and a gradual price ascent, signaling a shift in market sentiment.
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