Viewpoint: The "Bottom Is In" Narrative Misleads Market Participants into Trying to Buy the Dip, Caution Advised to Wait for Trend Confirmation Instead of Chasing the Bottom
BlockBeats News, July 2nd, CryptoQuant analyst Darkfost criticized the recurring "bottom is in" narrative in the current market. Darkfost pointed out that technically the bottom is the lowest point of a trend reversal that has already occurred, and almost no one can perfectly buy at that position. Since it's almost certain that one cannot buy at that point, chasing or estimating it is meaningless. Market participants should not put their trust in such bottom-fishing judgments, but should understand that position management is an ongoing process. Just as the bottom itself takes time to solidify, only after the trend reversal is confirmed can one conclude in hindsight that the bottom has been formed.
Darkfost believes that the focus should be on the process rather than price action, with the key being to distinguish between post hoc confirmation and pre hoc prediction. The narrative of calling "the bottom is in" easily leads people to believe they can perfectly buy the bottom, while the truly meaningful approach is to gradually build and manage positions in the bottom area, waiting for trend confirmation rather than chasing the lowest point.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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