Cycle Low

Definition ∞ A cycle low refers to the lowest price point reached by a digital asset or market index within a specific market cycle or trend. This point typically represents a period of maximum pessimism or capitulation among market participants. It often precedes a potential reversal in market sentiment and the beginning of a new upward price trajectory. Identifying a cycle low is a key aspect of technical analysis for many investors.
Context ∞ The term “cycle low” is commonly discussed in crypto news and market analysis, particularly when assessing the bottoming out of a bear market or a significant price correction. Reports frequently highlight whether a current price point could represent a new cycle low, influencing investment strategies and discussions about market recovery. Recognizing these patterns helps investors gauge potential entry points and understand long-term market behavior.