One of the primary signals is the word “crash.” When traders and investors flood social media with talk of crashes, it usually reflects peak panic. Ironically, history shows that this is often when the market is set to recover, particularly for assets like Bitcoin.
Similarly, when the words “sell” and “dead” become widely used, it’s a sign of widespread bearishness. This overuse typically precedes a market reversal, creating opportunities for bold traders willing to go against the grain.
Another key term is “crackdown.” This word indicates regulatory fears and legal challenges, which can cause market dips. However, these moments of panic often offer buying opportunities, as the fears tend to be exaggerated.
The word “liquidation” is also telling. Liquidations occur when traders are forced out of their positions, often leading to sudden price swings. In bullish markets, short liquidations can spark rallies, presenting an opportunity for new buyers.