Cycle Bottom

Definition ∞ A cycle bottom refers to the lowest point reached by an asset’s price or a market index within a specific economic or market cycle. In cryptocurrency markets, this indicates a period of maximum price depreciation and often marks the conclusion of a bear market phase. It typically precedes a reversal in market sentiment and the beginning of an upward price trend. Identifying a cycle bottom is a key objective for many market participants.
Context ∞ Crypto news frequently reports on indicators and analyses attempting to identify or confirm a cycle bottom, as it signifies a potential turning point for investor entry. Discussions often center on historical data, on-chain metrics, and macroeconomic factors influencing market cycles. Understanding the concept of a cycle bottom provides context for market predictions and investment strategies in digital assets.