Short-Term Bottom

Definition ∞ A short-term bottom in financial markets refers to a temporary low point in an asset’s price before a potential reversal or upward movement. This price level often indicates a period of strong buying interest or exhaustion of selling pressure. Identifying a short-term bottom is a common objective for traders seeking to enter positions at favorable prices. It signals a potential immediate price rebound.
Context ∞ In the volatile cryptocurrency markets, identifying a short-term bottom is a frequent analytical goal for traders attempting to capitalize on rapid price fluctuations. Discussions often involve technical analysis tools, on-chain indicators, and market sentiment metrics to predict these temporary lows. While challenging, accurate identification can inform strategic entry points for short-duration trades within the digital asset space.