Recently, while watching the market, I noticed a very important phenomenon: many people chase after rising prices and sell off during dips, actually ignoring some bottom signals. Especially after a coin's price undergoes a long-term deep correction, that typical bottoming pattern is actually quite easy to identify.

Breaking down this process makes it clearer to understand. First, you need to understand what building a bottom means. Simply put, it’s when the coin’s price, after experiencing a significant decline, begins to repeatedly confirm at the bottom area. During this stage, the bullish forces gradually gather, shifting from a pure stockpile game of funds to a situation where incremental funds start entering the market. When this force becomes strong enough, trading volume will significantly increase, and buying enthusiasm continues to heat up.

In terms of candlestick patterns, the most direct expression of bottoming and piling up is a bullish candle with a long lower shadow suddenly appearing. This candle is like a pile driven into the ground, symbolizing the process where the bears try to push the price down but are strongly countered by the bulls. In my practical experience, I’ve summarized a few key points for judgment.

First, this pattern only appears after a clear decline, sometimes even after entering a sideways consolidation phase. Second, the body of the bullish candle should be sufficiently large, usually not less than 6%. For index-level bottoming signals, the body generally shouldn’t be less than 3%. The upper and lower shadows should be relatively short, ideally with no upper shadow at all. At the same time, the trading volume on that day must be significantly higher, which is crucial for confirming the bulls’ resolve.

This signal usually appears in two situations. One is triggered by technical factors, such as a natural rebound after a large drop; the other is driven by news, such as a sudden release of positive information on that day. I’ve found that the latter often forms a stronger bottoming pattern because of external catalysts.

The key is to identify these signals promptly when they appear, so you can seize the opportunity just as the bulls are beginning to mount a counterattack. Recently, there have been quite a few such opportunities in the market. If you're interested, you can follow some related asset trends on Gate to verify whether these patterns are truly effective.