$USUAL In the financial and crypto markets, corrections are normal and usually indicate a consolidation movement before a possible upward resumption. A correction occurs when prices pull back after a period of significant growth, allowing the market to “breathe” and adjust to overbought levels.
If the market is correcting to rise again, some signs can be observed:
1. Trading Volume: An increase in volume during the recovery may indicate that buyers are returning with force.
2. Support and Resistance Levels: If the price respects important support levels, this may signal a solid base for the next upward movement.
3. Technical Indicators: Look at indicators such as the RSI (Relative Strength Index) or moving averages to check if the market is coming out of an overbought or oversold zone.
4. Positive News or Catalysts: Regulatory changes, institutional adoption or technological advances can boost the market again.
5. Overall Market Sentiment: A shift from pessimism to optimism is another sign that the market may be about to move higher.
Watching the movement carefully and having a clear strategy is key, especially in volatile markets like crypto.