How can I identify a bump-and-run reversal bottom formation in digital currencies?

1 answers

• AlexandrMay 19, 2025 · 2 months ago
  Identifying a bump-and-run reversal bottom formation in digital currencies can be challenging, but here are a few steps you can take. First, look for a sharp decline in price followed by a sharp rise. This indicates a strong selling pressure followed by a sudden increase in buying interest. Second, pay attention to the volume during this formation. In the initial phase, the volume tends to be high, indicating significant selling activity. As the price stabilizes, the volume decreases. Finally, look for a 'reversal bottom' pattern after the run phase. This can be a U-shaped or V-shaped pattern with a clear support level. Remember to consider the overall market trend and use other technical indicators to confirm the formation.
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