-- HOW TO FIND MARKET BOTTOMS --
Here we see that btcusdlongs/btcusdshorts gets a huge spike upwards while bitcoin itself is going down.
Similar to RSI, this is a classic divergence that shows that people don't feel safe holding shorts any longer and/or want to go long and catch the bottom.
With a btc/usd overlay it's very easy to see how during previous btc bottoms, btcusdlongs/shorts gets a huge spike and soon after btc/usd rebounds as well.
Another tool i like to use is the cm williams vix fix that finds market bottoms by itself, just make sure to use it on multiple larger time frames to confirm the absolute bottom.
Here we see that btcusdlongs/btcusdshorts gets a huge spike upwards while bitcoin itself is going down.
Similar to RSI, this is a classic divergence that shows that people don't feel safe holding shorts any longer and/or want to go long and catch the bottom.
With a btc/usd overlay it's very easy to see how during previous btc bottoms, btcusdlongs/shorts gets a huge spike and soon after btc/usd rebounds as well.
Another tool i like to use is the cm williams vix fix that finds market bottoms by itself, just make sure to use it on multiple larger time frames to confirm the absolute bottom.