Discounted Levels

Definition ∞ Discounted levels refer to price points for an asset that are significantly below recent highs or perceived fair value, presenting a potential buying opportunity for investors. These levels often emerge during market corrections or periods of heightened selling pressure. Identifying such price points is a common strategy in technical analysis to gauge market entry.
Context ∞ In cryptocurrency markets, identifying discounted levels is a frequent activity for traders and long-term holders seeking to acquire assets at reduced costs. These periods can result from broad market downturns, specific project news, or profit-taking activities. Monitoring on-chain metrics and market sentiment helps determine if current prices represent genuine discounted levels or signal further declines.