Definition ∞ Market cycle lows represent the lowest price points reached by a digital asset during a particular market downturn or bear market phase. These periods are typically characterized by extreme negative sentiment, reduced trading volume, and significant investor capitulation. Identifying these lows is crucial for understanding the cyclical nature of cryptocurrency markets.
Context ∞ Understanding market cycle lows is essential for investors seeking to identify potential entry points for long-term positions. The key discussion often involves analyzing various on-chain and technical indicators to determine when a true market bottom has been established. A critical future development involves improving predictive models to more accurately identify these turning points and differentiate them from temporary price corrections.
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