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In technical charts, several signals can suggest potential tops or bottoms. For potential tops, a bearish divergence is a common signal. This occurs when the price of a cryptocurrency makes higher highs, but the corresponding indicator, such as the Relative Strength Index (RSI), makes lower highs. Another signal is a double - top pattern, where the price reaches a high, drops, and then rallies back to approximately the same high before starting to decline again. For potential bottoms, a bullish divergence is significant. Here, the price makes lower lows, but the indicator makes higher lows. A hammer candlestick pattern can also indicate a potential bottom. It has a small body at the top and a long lower wick, suggesting that sellers initially pushed the price down but buyers stepped in and drove it back up. Additionally, a triple - bottom pattern, where the price touches a low three times before starting to rise, can signal the end of a downtrend.
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