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.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
APY_Chaservip
· 5h ago
Good idea, I learned more.
View OriginalReply0
ClassicDumpstervip
· 6h ago
Roughly estimating, it still has to go through another bear phase.
View OriginalReply0
CountdownToBrokevip
· 6h ago
It's too hard to catch the bottom.
View OriginalReply0
WenAirdropvip
· 6h ago
The key is to wait patiently.
View OriginalReply0
NeverPresentvip
· 6h ago
Awesome, well researched.
View OriginalReply0
WalletsWatchervip
· 6h ago
Seeing too many bottoms has made me numb.
View OriginalReply0
StakeWhisperervip
· 6h ago
8.5x is still too conservative.
View OriginalReply0
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)