Market bottoming refers to the period during which a digital asset’s price approaches its lowest point within a downtrend, signaling an impending reversal. This phase is marked by a gradual decrease in selling momentum and an increase in buying interest, leading to price stabilization. It represents the conclusion of a significant price decline and the beginning of a potential recovery. This process can extend over several weeks or months.
Context
Cryptocurrency news frequently reports on signs of market bottoming to indicate a potential shift in market dynamics. On-chain metrics, such as a decline in realized losses and an increase in accumulation by long-term holders, are often cited as evidence. Understanding market bottoming provides important context for anticipating a market recovery and for evaluating the resilience of digital assets after substantial price corrections.
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