Over the years, a number of indicators have emerged that have often helped pinpoint the peak of the Bitcoin bull market. These indicators have been activated in previous cycles and their triggers have often been a signal that it is time to get out of the market as a new bear market is approaching. This time though, even with the Bitcoin price hits multiple new all-time highsNone of these cycle peak indicators have activated, indicating that the market top has yet to be reached.
0 of the 30 bull market peak indicators are activated
The Bull Market Peak Indicator tracker on the Coinglass website tracks a total of 30 indicators that track 30 indicators that show the progress of the Bitcoin bull market towards reaching a top. Some important ones include the Bitcoin Bubble Index, the Puell Multiple, the Bitcoin Rainbow Chart and the Altcoin Season Index.
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Typically, these indicators are tracked on a scale of 0-100%, where 0% means that the indicator is far from being activated and 100% indicates that an indicator has been activated. If only a few of these reach the 100% mark and are activated, it usually does not mean that the Bitcoin peak has been reached.
But even now, none of these indicators have come into effect. Most remain quite low, while those of the Bitcoin dominance are high, but still not activated. To make definitive progress towards the Bitcoin market peak, at least half of these would need to be activated.
What this means for investors
Since none of the bull market peak indicators have been activated, this means that the Bitcoin price may be far away from its all-time high. With the score still at 0 out of 30, this suggests that this is a time to hold despite the declines the market has suffered recently.
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According to an earlier report from BitcoinistThat was the case a few months ago, and now two months later the tracker is still the same. So $126,000 may not be Bitcoin’s all-time high, and the market could end up having an altcoin season after all.
In the event that more than half of the bull market peak indicators are triggered, it means that the top of the market is getting close. Once it reaches 30/30, it signals the start of the next bear market, and this is when the market selling is at its highest, leading to rapid price declines across the board.
Featured image of Dall.E, chart from TradingView.com