Theta Fuel | Bottom Signal Explained

Jul 18, 2022

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.