9 Major Core Indicators Reveal Peak Signals of the Crypto Bull Market
Author: BTC_Chopsticks
How to Accurately Predict the Bull Market Peak? These 9 Key Indicators You Must Master!
Accurately predicting the peak of the crypto market bull run is nearly impossible, but you can use these data indicators to assess whether the market is approaching its top.
If 5 signals appear simultaneously, then you have either accumulated enough wealth or you might have to go back to working at McDonald's…
Now, let's uncover the secrets of the bull market's end together.
1. NUPL (Net Unrealized Profit/Loss)
Market Sentiment Indicator
When NUPL enters the euphoria/greed zone (over 75%), it usually indicates that the market is nearing its peak, and investors are becoming overly optimistic.
2. RSI (Relative Strength Index)
Short-term Overbought Signal
When RSI exceeds 90, the market is typically in an extreme overbought state. Historical data shows that peaks usually form within 4-7 weeks, followed by a correction.
3. Altcoin Season Index
Altcoins vs Bitcoin
When the index exceeds 85, it indicates that altcoins are outperforming Bitcoin overall, which is often a sign that the market is entering a euphoric phase.
4. MVRV Z-Score (Market Value vs Realized Value)
Assessing Extreme Overvaluation
When the MVRV Z-Score exceeds 6, it suggests that the market may be nearing its peak, and caution is warranted regarding potential correction risks.
5. Pi Cycle Top Indicator
Accurately Identifying Bitcoin Bull Market Peaks
This indicator has successfully predicted major price peaks of Bitcoin across multiple cycles.
When it issues a warning signal, it means the bull market is about to peak.
6. MACD (Moving Average Convergence Divergence)
Trend Change and Momentum Signal
When the MACD shows a death cross, it indicates that market momentum is weakening, and a trend reversal may be imminent.
7. MFI (Money Flow Index)
Buy/Sell Pressure Monitoring
Similar to RSI, but MFI incorporates trading volume data. When it shows extreme overbought conditions, it typically signals a market peak.
8. Composite Business Cycle Index
Macroeconomic Impact
When this index exceeds 50, it indicates that the market may soon enter a peak phase.
9. Mayer Multiple
Price vs 200-Day Moving Average
Historical data shows that when the Mayer Multiple reaches 2.4, Bitcoin is usually at the peak of a bull market.
Conclusion
While accurately predicting market peaks is challenging, these 9 indicators can help you assess market positioning more scientifically. The bull market frenzy can lead to substantial profits, but without a clear exit strategy, it could also bring you back to square one overnight.