📉 Mid-Cycle Correction Prep: 3 Signals That Tell You When to SELL
🚨 Emotional Immunity:
Mastering Exit Strategy Before the Crash
The 2025 cycle will have multiple severe corrections. Professional traders don't wait for the drop; they use leading indicators to strategically de-risk.
1. 💰 The Funding Rate Anomaly:
When Funding Rates are consistently and extremely high (0.1%+) across major perpetual exchanges ($BNB,
$BTC , $ETH) for multiple days, it signals excessive leverage and an imminent flush-out (a long squeeze).
Actionable Step:
Set a hard threshold. High funding + a weak daily close (e.g., below the 20-day EMA) is your signal to reduce margin/convert 30% to stablecoins.
2. 🔎 The 'Everybody's Rich' Signal:
This is a psychological indicator. When non-crypto native friends, mainstream media, or your taxi driver start giving you specific altcoin advice, the market is near a temporary local top. This is peak retail FOMO.
Key Behavior:
Measure the sentiment. If low-utility memecoins are outperforming core infrastructure tokens by 500% in a week, liquidity is dangerously thin and speculative.
3.
$BTC Dominance Breakout (The Altcoin Killer):
A swift, aggressive jump in
$BTC .D (Bitcoin Dominance) after a period of sideways consolidation often signals that capital is flowing out of altcoins and back into Bitcoin for safety.
Portfolio Move: This is the time to sell high-beta altcoins (Layer-3s, Micro-caps) and consolidate into BTC or stablecoins.
💡 Final Thought & Interaction
What single metric do YOU rely on most for a major market reversal? Share your exit strategy. 👇
#TradingStrategy #RiskManagement #bitcoin #MarketAnalysis #FOMO