The mechanisms for forming tops and bottoms are entirely different, as they stem from two distinctly different emotional and technical environments.
Tops often quietly build when everything still seems strong: market sentiment is high, people scramble to chase prices, eager to catch the last leg of the trend. Prices often accelerate upwards, continuously breaking previous highs, with almost everyone optimistic about higher targets, yet few think about setting up protective measures. However, beneath the surface, those who have held positions for months are quietly distributing, using the enthusiasm of newcomers to exit the market stealthily. From the outside, everything still looks like a bull market; internally, however, the chips are being dispersed. The final surge can be rapid and intense, filled with drama: the last sprint → immediately followed by a sharp reversal.
In contrast, bottoms often emerge when no one believes anymore. There is no frenzy, no fear of missing out, only exhaustion, abandonment, and doubt. People sell not out of willingness, but because they are forced to: stop-loss triggers, margin calls, and collapsed beliefs. This kind of surrender can be brutal, but the true bottom does not appear in that long bearish candle itself, but rather in the state that slowly emerges afterwards—often a dull, slow, and unappealing range, with volatility gradually contracting and trading volume undergoing a qualitative change. At this point, those quietly accumulating positions begin to surface, while the public has long ceased to pay attention to the market.
Tops are noisy, bottoms are silent.
Tops stem from the fear of missing out, while bottoms come from complete abandonment.
Therefore, tops can be rapid and intense, filled with emotion; whereas bottoms often require time, consolidation, and patience. It is the foundation quietly laid when everyone else is mentally exiting, rather than a perfect turning point appearing out of nowhere.
