With Bitcoin breaking through $73,000 and reaching a new high, investors are paying close attention to when it will reach its peak. In this article, Doo Wan provides some signals to watch for in order to identify trends and maximize profits.
Time Cycles
Cryptocurrency analyst Virtual Bacon predicts that he will exit the market by the end of 2025, regardless of market performance. He bases this timeframe on the Bitcoin halving cycle and historical bull market durations. According to Glassnode data, previous bull market cycles have followed similar patterns, with a peak reached two years after the cycle low, followed by a rapid decline into a bear market. The current cycle is still in an upward phase and could potentially reach a new peak by the end of 2025.
Bitcoin 200-day and 21-week EMA
Virtual Bacon suggests that investors should pay attention to Bitcoin’s 200-day and 21-week exponential moving averages (EMA). Currently, Bitcoin’s price is significantly higher than the 200-day moving average.
Bitcoin Rainbow Chart
The Bitcoin Rainbow Chart maps the evolution of Bitcoin’s price over time and indicates whether it may be approaching a top or bottom. The closer the price is to the red area, the more likely it is to be approaching a peak, while the closer it is to the blue area, the more likely it is to be approaching a bottom. Currently, Bitcoin is in a “HODL” state indicated by the yellow color.
Pi Cycle Top Indicator
The Pi Cycle Top Indicator uses the 111-day moving average (111DMA) and the multiple of the 350-day moving average (350DMAx2) to predict Bitcoin’s top. When the 111DMA moves upward and crosses the 350DMAx2 line, it is a potential signal that Bitcoin is at or near its peak.
Altcoin Frenzy
In the later stages of a bull market, funds gradually flow from Bitcoin to altcoins and even to various low-quality projects. This stage is characterized by significant price surges of altcoins, exaggerated valuations, and the emergence of new projects taking advantage of the bullish market sentiment.
Bitcoin Reserves on Exchanges
A notable characteristic of the end of a bull market is a significant amount of Bitcoin being transferred to exchanges for profit-taking, leading to a gradual decline in Bitcoin’s price. Currently, the Bitcoin reserves on centralized exchanges are decreasing. A sudden increase in this data in the future could be a warning sign.
Google Search Popularity
This reflects the public’s interest in Bitcoin. Typically, a surge in search popularity is a sign that the bull market is approaching its end. Some Chinese key opinion leaders (KOLs) have jokingly commented on social platforms that when Google search volume spikes, it means the bull market is ending.
In conclusion, by paying attention to these seven indicators, investors may be able to identify signals that help them “sell at the top” and maximize their profits.