✨Watch Out for These Warning Signs BEFORE the Crypto Market Crash Happens!💰💵
Corrections usually occur in a gradual decline over several days, with prices falling by more than 10%. A market crash is a sudden and severe drop in prices that occurs within hours or even minutes, generally resulting in significant losses.
Flash Crashes
Certain cryptocurrencies may experience “flash crashes,” which are characterized by sudden, steep price declines triggered by intense selling pressure. Unlike traditional crashes, prices tend to recover quickly and approach their initial levels.
Fear and Greed
The Fear and Greed Index provides a comprehensive snapshot of market sentiment, ranging from 0-100. Low scores indicate oversold, while high scores indicate a potential correction.
Whale Watching
Large holders or "whales" have significant influence in the crypto market. It is crucial to monitor their activities as they can influence prices, engage in potentially manipulative practices, and provide valuable insight into market dynamics.
Measuring Market Momentum
The Relative Strength Index (RSI) measures buying pressure against selling pressure with values ranging from 0-100. Extremely high RSI levels can indicate overheating and may precede a market pullback, especially when it exceeds 70.
trading volume
A sudden drop in trading volumes/liquidity causes red flags to rise in the market, signaling reduced market activity. Decreasing liquidity paves the way for the decline or collapse of the market.
Regulatory Winds
Regulatory measures, such as bans on certain activities, cause uncertainty and impact market sentiment, potentially leading to long-term downturns or disruptions.
