Market Cycle Floor

Definition ∞ A market cycle floor represents the lowest price point reached by an asset or market during a specific economic or market cycle. This level is typically observed after a prolonged downturn and often precedes a period of recovery or accumulation. Identifying a market cycle floor is a key objective for technical analysts seeking to determine optimal entry points for investments. It indicates a potential turning point in price action.
Context ∞ Discussions around the market cycle floor are common in cryptocurrency analysis, where identifying such points can inform investment strategies. News articles frequently speculate on whether current price levels represent a bottom, drawing on historical data and technical indicators. The confirmation of a market cycle floor often signals a shift in market sentiment from bearish to more neutral or bullish perspectives.