The Six Marks:
Whale Movement
Fear and Greed Index
Google Trends
The Bubble
Relative Strength Index
Spread of Meme Coins
First Mark 👇-
Whale Movement (Large Traders)
Whales are individuals or institutions that own massive amounts of cryptocurrency.
If you notice that these whales have suddenly started selling large amounts, this usually indicates that they have lost confidence in the market. And when they sell, almost the entire market follows them, leading to a rapid price collapse.
Second Mark 😰😰😱
Fear and Greed Index (in Binance)
The Fear and Greed Index measures the general psychological state of traders: Are they fearful (Fear) or greedy (Greed). More information about the Fear and Greed Index in the cryptocurrency market from Binance Academy.
When the indicator is at extreme greed, it means that people are entering without thought, just because "everyone is winning." Historically, this moment usually precedes a major crash, as the market cannot continue to rise indefinitely.
Third Mark 🌍🌏🌎
Google Trends
Google Trends is a free tool that allows you to analyze the popularity of search phrases on Google and YouTube... through a sample of anonymous and aggregated search requests. You can use it to understand global or regional interest in a particular topic, compare different search phrases, see currently trending topics, and identify changing trends in real time.
If search activity suddenly spikes crazily, it means people are entering due to "media hype" rather than logical analysis.
This sudden influx creates a "temporary bubble," which usually ends in a crash.
Fourth Mark 🎈🎈
The Bubble (very large rise)
The bubble essentially means that the value of the currency is rising unusually and very quickly and significantly compared to the average.
Any excessive rise without real economic foundation usually precedes a strong explosion. Just like a balloon that is blown up more than necessary, it must eventually burst. We all know the physical and social rule: pressure generates explosion.
Fifth Mark 💪💪
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator that measures whether a currency is in an "overbought" or "oversold" condition.
When the Relative Strength Index (RSI) is very high (usually above 70), it means that the currency has been overly bought, and the time for a reversal and sharp decline may be approaching.
Sixth Mark 🌀🎆📊
Spread of Meme Coins
Meme coins are cryptocurrencies often created for fun or without a real project behind them, such as Dogecoin or Shiba Inu or the YZY coin that was launched recently. More information about meme coins from Binance Academy.
When meme coins spread widely and everyone begins to talk about them, it means the market is in a "speculative bubble" stage. Historically, this moment always precedes a major market crash.
