Cycle Reset Point

Definition ∞ A Cycle Reset Point in cryptocurrency markets denotes a specific moment or price level where a previous market cycle is considered to have concluded, and conditions suggest the beginning of a new cycle. This typically occurs after a significant market downturn, indicating a capitulation event and the establishment of a new market floor. It represents a fundamental shift in market dynamics and investor psychology. This point often marks the lowest price achieved before a sustained recovery.
Context ∞ Analysts frequently debate the precise timing of a Cycle Reset Point when assessing the long-term outlook for digital assets. News articles often highlight indicators suggesting a cycle reset, such as extreme fear in sentiment or a large volume of realized losses. Identifying this point is important for investors seeking to position themselves for subsequent growth phases.