Svmuu News: CryptoQuant analyst Darkfost posted that while the view that “the bottom is in” is increasingly prevalent in the community, many people are overlooking the true meaning of “the bottom.” From a technical perspective, the bottom typically refers to the lowest point reached during a trend reversal—that is, in extreme cases, the position of the deepest lower shadow on a candlestick chart (even on extremely short time frames).
The problem, however, is that it is virtually impossible for most investors to buy precisely at this exact moment when the price hits its lowest point. Therefore, blindly chasing “bottom-fishing” opportunities or attempting to predict the bottom has little practical value. Rather than fixating on absolute price lows, it is better to focus on “process management” in trading and investing—that is, how to gradually build and adjust risk exposure. Position allocation is itself a process that requires continuous optimization, just as it takes time to confirm that a bottom has formed. Darkfost reminds market participants to avoid over-reliance on narratives such as “the bottom has been reached” and to focus more on methodology and execution to enhance overall risk management capabilities.
Analyst: The notion that “the bottom has been reached” is largely a narrative trap; we should focus on the process rather than specific price levels
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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