$BTC $BNB $ETH
🧠 Overview
Crypto has seen impressive gains over the past year, with Bitcoin reclaiming key levels and altcoins rallying hard.
But experienced traders know these runs don’t go up forever.
Here are 5 signs to watch for that could indicate a major correction is on the horizon—and how to prepare.
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⚠️ 1. Overheated Funding Rates
✅ Perpetual futures funding rates turning highly positive
✅ Extreme long bias = crowded trade
✅ Funding spikes often precede sharp liquidations
Tip: Check funding rates on major exchanges before opening big longs.
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📉 2. Parabolic Price Moves Without Consolidation
✅ Vertical charts often = unsustainable rallies
✅ Lack of healthy pullbacks suggests weak support
✅ Fast gains = just as fast crashes
Strategy: Take partial profits during parabolic runs.
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📊 3. Weakening Volume on New Highs
✅ Breakouts with declining volume signal exhaustion
✅ Strong trends need rising participation
✅ Divergence = potential reversal warning
Watch: Volume confirms the strength of a move.
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🌐 4. BTC Dominance Reversals
✅ Altcoin rallies often end when BTC dominance bottoms out
✅ Capital rotates back into BTC in risk-off phases
✅ Rising dominance = altcoin bleed
Pro tip: Track BTC dominance as a macro rotation signal.
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🧭 5. Macro and Regulatory Headwinds
✅ Interest rate hikes or recession fears
✅ Crackdowns on stablecoins or exchanges
✅ Global liquidity tightening
Real risk: Crypto doesn’t exist in a vacuum—it’s tied to broader markets.
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✅ Conclusion
Corrections are healthy—but they hurt unprepared traders.
If you spot these warning signs:
⭐️ Reduce leverage
⭐️ Consider taking partial profits
⭐️ Watch for better re-entry levels
Crypto will continue to offer opportunities—but only for those who manage risk well.
Not financial advice. DYOR.
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