Definition ∞ A market correction bottom is the lowest price point reached by an asset or market after a significant downward price adjustment. This level typically marks the conclusion of a period of price decline, often followed by a stabilization phase and a subsequent recovery. It is characterized by exhausted selling pressure and the emergence of renewed buying interest, indicating a perceived undervaluation. Identifying this point retrospectively is easier than predicting it in real-time, yet market participants actively seek signals.
Context ∞ Cryptocurrency news frequently analyzes market correction bottoms to identify potential turning points in market cycles and assess recovery prospects. On-chain metrics, such as investor realized price or long-term holder behavior, are often used to identify areas where a bottom might form. Recognizing the characteristics of a market correction bottom is essential for understanding market resilience and future price trajectories.
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