Price Correction Bottom

Definition ∞ Price correction bottom signifies the lowest point reached by an asset’s price after a period of decline or correction. This level represents the culmination of selling pressure and the point at which buying interest overcomes further price depreciation, leading to a stabilization or reversal of the trend. Identifying a price correction bottom is a key objective for market analysts seeking to time entry points. It often correlates with exhaustion of sellers and renewed investor confidence.
Context ∞ In cryptocurrency markets, identifying a price correction bottom is a frequent topic in market analysis and news, as investors search for signals of a potential recovery. Indicators like trading volume, on-chain metrics, and macroeconomic factors are often cited to confirm these bottoms. Reaching this point can mark a shift in market sentiment from bearish to neutral or bullish.