Analyst: The market’s so-called “the bottom has formed” is more of a narrative trap; investors should still focus on position management.

Deep Tide TechFlow News, July 2nd, CryptoQuant analyst Darkfost stated that the community is constantly seeing views like "the bottom is in," but many overlook the true meaning of "bottom." From a technical perspective, the bottom typically refers to the lowest point during a trend reversal, i.e., the deepest lower shadow of a candlestick (even on very short timeframes) under extreme conditions.

However, the problem is that it is almost impossible for most investors to accurately buy at that exact lowest moment, so blindly chasing "buying the dip" or attempting to predict the bottom is not practical. Instead of obsessing over the absolute low price, it is better to focus on the "process management" of trading and investing—that is, how to gradually build and adjust risk exposure. Position allocation itself is an ongoing optimization process, just as the formation of a bottom takes time to confirm. Darkfost reminds market participants to avoid over-relying on narratives like "the bottom is in" and instead pay more attention to methodology and execution processes to enhance overall risk management capabilities.