Mid-Term Recovery Signal

Definition ∞ A technical or fundamental indicator suggesting that a digital asset’s price, after a period of decline, is likely to experience a sustained upward trend over several weeks or months. This signal often involves a combination of market metrics, such as increasing trading volume, positive on-chain data, or favorable macroeconomic conditions. Investors use these signals to identify potential buying opportunities following a market downturn. It represents a shift in market sentiment from bearish to cautiously optimistic.
Context ∞ Crypto analysts frequently discuss mid-term recovery signals in their market commentary, particularly after significant price corrections. Identifying these signals helps investors gauge the potential for a sustained rebound rather than a temporary bounce. However, the interpretation of such signals remains subject to market volatility and broader economic factors.