MACD All Time Low

Definition ∞ MACD All Time Low refers to a technical analysis indicator, the Moving Average Convergence Divergence, reaching its lowest recorded value. The MACD is a momentum indicator that shows the relationship between two moving averages of an asset’s price. An all-time low reading suggests extreme bearish momentum, indicating that the asset has experienced prolonged and significant downward price movement. This can sometimes precede a potential reversal, as extreme conditions may signal a market bottom.
Context ∞ When news reports mention MACD reaching an all-time low for a cryptocurrency, it often triggers discussions among technical analysts about potential capitulation events or oversold conditions. While not a definitive buy signal, such readings can attract contrarian investors looking for assets that might be poised for a recovery. It provides a historical reference point for assessing the depth of a price correction.