Theta Fuel | Bottom Signal Explained
I mentioned how to spot a bottom based on the volume profile of a trading pair on the Ethereum Classic chart.
The volume was low on ETCUSDT so the picture wasn't clear, we can have a better look at it here.
Theta Fuel vs Tether (TFUELUSDT) Bottom Volume
Looking at the volume for bottom/support confirmation.
If we look from January through March 2022 we start with low/flat volume.
There is a spike in bear volume in March before a bullish wave.
The bear volume before the bullish wave predicts the capitulation phase.
After March 2022, volume goes down again as TFUELUSDT starts to drop...
A panic force takes over the market and bear volume is at its highest around mid-May, on the first major low.
Here is the signal...
TFUELUSDT continues crashing and ends up in a lower low, 15-June, but this time the bear volume is lower compared to May which tells us that the bearish momentum is lost.
Right after the lower low in mid-June, strong buy volume shows up...
In fact, the highest volume ever on this chart.
This is the bottom signal explained based on volume.
This type of volume dynamic points to a low/support being established, as this happened prices can now grow.
Additional bullish signals at this point can support the bottom volume profile analysis.
Namaste.
The volume was low on ETCUSDT so the picture wasn't clear, we can have a better look at it here.
Theta Fuel vs Tether (TFUELUSDT) Bottom Volume
Looking at the volume for bottom/support confirmation.
If we look from January through March 2022 we start with low/flat volume.
There is a spike in bear volume in March before a bullish wave.
The bear volume before the bullish wave predicts the capitulation phase.
After March 2022, volume goes down again as TFUELUSDT starts to drop...
A panic force takes over the market and bear volume is at its highest around mid-May, on the first major low.
Here is the signal...
TFUELUSDT continues crashing and ends up in a lower low, 15-June, but this time the bear volume is lower compared to May which tells us that the bearish momentum is lost.
Right after the lower low in mid-June, strong buy volume shows up...
In fact, the highest volume ever on this chart.
This is the bottom signal explained based on volume.
This type of volume dynamic points to a low/support being established, as this happened prices can now grow.
Additional bullish signals at this point can support the bottom volume profile analysis.
Namaste.
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