Lower Low

Lower Low

In the world of cryptocurrency, the term 'Lower Low' can be heard quite often. To simplify it for the beginning crypto enthusiast, 'Lower Low' forms part of a technical analysis that assists in predicting possible future movements of cryptocurrency prices.


A 'Lower Low' is when the price of a cryptocurrency reaches a new low, lower than its previous low point. This usually indicates that the coin is in a downward trend, potentially signalling an upcoming bear market (which is a term used when prices of coins are falling, and the market is characterized by fear and pessimism).

How 'Lower Low' works

When analyzing a cryptocurrency price chart, consider each low point or 'valley' the price reaches. If the price of the coin drops below its previous low point, we say it has reached a 'Lower Low'. This tells traders that the demand for the coin is declining, as people are not willing to buy at higher prices. This typically starts a domino effect where more and more traders sell their holdings to avoid potential further losses, thereby pushing the price even lower.

Significance of 'Lower Low'

The 'Lower Low' can signify a change in the market trend - from bullish (rising prices) to bearish (falling prices). It can trigger a series of sell-offs leading to a significant decline in the cryptocurrency's price. However, it's important to note that this might not always be the case as crypto markets are influenced by a variety of factors.

Key Takeaways

  • 'Lower Low' refers to a situation where the price of a cryptocurrency falls below its previous lowest point.
  • This can indicate a bearish (downward) market trend.
  • Understanding 'Lower Low' can help traders make informed decisions about when to buy or sell their cryptocurrencies.