HOW TO UNDERSTAND MAJOR CORRECTIONS IN ADVANCE?🚨
1. Overbought/Oversold Conditions: Indicators such as the Relative Strength Index (RSI) used in technical analysis indicate whether an asset is overbought or oversold. Overbought conditions may indicate that a correction is imminent.
2. Market Sentiment: Market sentiment obtained from sources such as social media, news and comments from market analysts is also important. Cases of excessive optimism or "greed without fear" can be a sign that the market may experience a correction.
3. Volume Indicators: Sudden increases or decreases in trading volume may indicate significant changes in market movements. Decreases in volume, especially during price increases, may indicate that the rise is not sustainable.
4. Macroeconomic Factors: Macroeconomic factors such as interest rates, inflation, major economic news and political events can also affect crypto markets and lead to corrections.
5. Sudden Market Movements: Sudden and sharp price movements, which are frequently seen in the crypto market, are usually a harbinger of a correction.