Recently, I’ve been researching some techniques to determine whether the market has truly bottomed out, and I found that looking at multiple dimensions together is more reliable.
First, regarding open interest, OI in the bottom area often drops to a very low level, which is an important signal. Also, keep a close eye on the weekly chart. For a true bottom reversal, trading volume needs to spike to at least about 8.5 times the daily average to be convincing.
There’s another easily overlooked point—the sustainability of capital accumulation. If the price keeps oscillating in a certain range but the capital buildup hasn’t even reached 1 billion, it’s probably not solid enough yet. Market bottoms can’t be confirmed in just a day or two; there must be enough turnover of chips and accumulation of funds.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
11 Likes
Reward
11
7
Repost
Share
Comment
0/400
APY_Chaser
· 5h ago
Good idea, I learned more.
View OriginalReply0
ClassicDumpster
· 6h ago
Roughly estimating, it still has to go through another bear phase.
Recently, I’ve been researching some techniques to determine whether the market has truly bottomed out, and I found that looking at multiple dimensions together is more reliable.
First, regarding open interest, OI in the bottom area often drops to a very low level, which is an important signal. Also, keep a close eye on the weekly chart. For a true bottom reversal, trading volume needs to spike to at least about 8.5 times the daily average to be convincing.
There’s another easily overlooked point—the sustainability of capital accumulation. If the price keeps oscillating in a certain range but the capital buildup hasn’t even reached 1 billion, it’s probably not solid enough yet. Market bottoms can’t be confirmed in just a day or two; there must be enough turnover of chips and accumulation of funds.