What Is the Difference between a Local Bottom and a Cycle Bottom in Cryptocurrency Markets?

A local bottom is a temporary low point in a price chart, followed by a short-term rally, but the overall downtrend may continue. It represents a pause or a minor reversal within a larger bear market.

A cycle bottom, on the other hand, is the lowest point in a multi-year market cycle, marking the end of a major bear market and the beginning of a new long-term bull market. Cycle bottoms are much rarer and more significant than local bottoms, and they are often characterized by widespread capitulation and a prolonged period of accumulation before the next major uptrend begins.