Bitcoin (BTC) price plunged by about $3,400 in an hour, warning traders that corrections during a parabolic move are likely to be sharp. Data from Glassnode shows that the fall resulted in the liquidation of Bitcoin futures long positions worth about $190 million on Binance within an hour, the largest to date.

In a strong uptrend, corrections are swift but short-lived because investors who expect the rally to continue use the dips to buy.

Binance US CEO Catherine Coley believes the Bitcoin…