Market Bottom Evidence

Definition ∞ Market Bottom Evidence refers to a collection of technical, on-chain, or fundamental indicators that collectively suggest a sustained downward price trend for an asset has concluded. This evidence might include capitulation events, significant accumulation by long-term holders, decreasing selling pressure, or a shift in macroeconomic conditions. Identifying a market bottom is a key objective for investors seeking to enter positions at opportune times. It signifies a potential reversal point in asset valuation.
Context ∞ Analysts and investors actively search for market bottom evidence in crypto markets, especially during prolonged bear cycles. Discussions often involve interpreting various metrics, such as realized price, dormancy flow, or MVRV ratios, to confirm a potential floor. Observing a confluence of these indicators and their sustained positive shifts provides crucial context for assessing the end of a downtrend and the beginning of a recovery phase.