Market Bottoms

Definition ∞ Market Bottoms represent the lowest price point reached by a specific asset or an entire market during a significant downturn, after which prices typically begin a sustained recovery. Identifying these turning points is a primary objective for investors and analysts aiming to capitalize on subsequent price appreciation. It signifies a reversal of downward momentum.
Context ∞ In cryptocurrency markets, accurately identifying market bottoms is often challenging due to extreme volatility and speculative forces, making it a constant topic of discussion in market analysis. Various technical indicators, on-chain metrics, and sentiment analysis are employed to predict these turning points, though with varying degrees of success. News reports frequently analyze market conditions for signs of an impending bottom.