📉 How to Know When a Correction Is Enough
Honestly, I do not know the exact answer.
You can watch RSI on the lower timeframe, draw Fibonacci, mark higher-timeframe levels, compare the pullback with previous structure. On BTC, this can still make sense. On thin altcoins, classic price action can break in one candle.
⚠️ Where the problem starts
Many alts have thin order books, uneven liquidity, and market makers can push price through clean levels without much resistance.
A “support bounce” can turn into another flush. An “oversold” move can keep bleeding if open interest is still inflated and leverage has not been cleared yet.
📊 What I watch
Open interest and mass liquidations.
When a calm market gets a position wipeout worth 0.5–1% of open interest on a specific asset, that is no longer random noise. Part of the leverage is gone, weak positions are out, and pressure may start fading.
These areas often give better local entries, especially when price stops accelerating after the impulse.
🔎 How to track it
Doing this manually is hard. You need to see the mechanics under the candle:
open interest drop;
mass liquidations;
liquidation size relative to open interest;
price reaction after the wipeout.
Crypto Resources already has these tools available for free: liquidation screener, open interest screener, live signals, and charts with liquidations.
Soon I will also deploy this on Binance. There are enough situations like this every day.
Follow me, I will share it. Free.

#support #Openinterest $HOME $LAB $SKYAI

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