📘 What is a Rounding Bottom?

$LINK spent most of May to August drawing a wide, slow saucer on the daily chart. Then it broke out and ran 45% above the old high. That shape is today's live lesson: the rounding bottom.

A rounding bottom (also called a saucer bottom) is a slow bullish reversal pattern. A downtrend loses speed, price drifts sideways near the low for weeks, then climbs back up in a smooth curve. When price closes above the level where the fall started (the rim), the reversal is confirmed.

📊 Live chart in the cover and in the image post below.

🔍 How to spot it

• It starts after a decline. The fall gets slower and smaller, not sharper

• The bottom is wide and round like a saucer, not a sharp V

• It takes time: weeks on a daily chart, often months

• Volume usually fades near the low (sellers are tired), then rises on the right side

• The rim is the high where the decline began. That is your breakout line

• There is no "handle" needed. That is the main difference from a cup & handle

📈 How traders use it

• Entry: on a daily candle CLOSE above the rim, ideally on strong volume

• Safer entry: wait for a pullback that retests the rim from above and holds

• Stop-loss: below the retest low, or below the right side of the saucer for a wider stop

• Target: measure the depth (rim minus the lowest point) and add it to the rim

🧪 Live example: $LINK daily, May – October 2026

The saucer:

• Left rim: May 10, high $10.87

• Slide through late May, sharp flush to $7.00 on June 5–6

• Second, quieter low near $7.01 on June 25

• July and early August: tiny candles between $7.5 and $8.9, daily volume down to $5–10M

• Right side: higher lows from August 1, steady climb toward the rim

Depth = $10.87 − $7.00 = $3.87, or 36% below the rim.

The breakout:

• Aug 21: daily close $11.99, above the rim, on about $90M of volume (9x the July average)

• Sept 15–16: pullback to $10.62, right back at the old rim. It held and closed above. A clean retest

• Measured target: $10.87 + $3.87 = $14.74

• Sept 28: LINK closed at $15.45, target reached. The high was $15.78 on Sept 29

Right now LINK trades near $13.38, about 15% below that high. Daily RSI(14) is 51, neutral. Price is testing the 20 EMA ($13.54) while the 50 EMA ($12.37) is still rising below.

What it means: the pattern did its job. Now the old rim at ~$10.87 is the deep support. The 50 EMA near $12.4 is the first area buyers usually defend.

For comparison, $BTC is not in a rounding bottom now. It trades near $83.4K after four rejections around $87K. No slow saucer, no rim break.

⚠️ Common mistakes

• Calling a fast V-bounce a rounding bottom. The low must be slow and wide

• Buying in the middle of the saucer, long before the rim. Many saucers drift for months

• Ignoring volume. A breakout on weak volume fails more often

• Treating the target as a promise. It is only a measured guide

✅ Quick checklist

• Decline that slows down, then a wide round low?

• Quiet volume at the bottom, rising volume on the right side?

• Daily close above the rim?

• Stop below the retest or the right side of the saucer?

• Target = depth added to the rim?

💬 Have you ever traded a rounding bottom? Did you wait for the rim break or buy early? 👇

Not financial advice. DYOR.

#TradingTips #RoundingBottom #ChartPatterns