Catching the bottom is every trader’s dream. But attempts to «guess» the bottom more often lead to losses. In this article — objective indicators that help identify when the market is approaching a bottom or a peak.
On-Chain Metrics
MVRV Ratio (below 1 = fear zone, above 3 = greed zone). SOPR (Spent Output Profit Ratio). Exchange Flows — net outflows from exchanges (bullish signal).
Fear and Greed Indicators
Crypto Fear & Greed Index: fear zone (10–25) — buy zone, greed zone (75–95) — sell zone. Social metrics: Google Trends, Social Volume.
The DCA Method
The best alternative to hunting for the bottom is DCA (Dollar-Cost Averaging). Regular purchases of a fixed amount smooth out volatility and remove emotional stress.
The AMBER AI model identifies entry and exit points with 87% accuracy.