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Cycle Lows

Definition

Cycle lows represent the lowest price points an asset reaches within a defined market cycle. These points signify the nadir of a particular market downturn or bearish phase for a digital asset, often preceding a period of recovery or accumulation. Identifying cycle lows is crucial for technical analysis, as they can act as significant support levels and indicators for potential market reversals. Such price levels are typically accompanied by capitulation events, where selling pressure reaches its peak before diminishing.