A rounded bottom formation may signify a bullish bias or a bullish price reversal after a long consolidation period. Traders identify and spot rounding bottoms as areas of interest to enter a long position in the cryptocurrency markets.
Most traders may use a weekly chart timeframe to inform decisions on a rounding bottom formation as it gives a clear picture of rounding bottoms, downtrends, and price consolidations for a long period of time.
In the event of rounding bottom formations, smart traders may employ other technical indicators such as the volume indicator to validate and aid confirmations on buy entries.