What Are Other Technical Indicators That Can Be Used to Confirm a Market Bottom?

Several technical indicators can be used to help confirm a potential market bottom in conjunction with signals like backwardation. The Relative Strength Index (RSI) falling into oversold territory (typically below 30) can indicate that selling pressure is exhausted.

Bullish divergences, where the price makes a new low but an indicator like the RSI or MACD makes a higher low, can signal a potential reversal. Volume analysis is also crucial; a spike in volume during a final sell-off, followed by a decrease in volume as the price stabilizes, can indicate capitulation.

Moving averages, such as the 200-week moving average for Bitcoin, have historically acted as strong support levels.