When will BTC peak? Data platform reveals '5 major top signals', one of which has already lit a red light

When will BTC hit the peak? CryptoQuant reveals 5 major top signals

BTC has recently hit new highs, even surpassing $97,000 at the time of writing today (21st). It makes people wonder where the top of BTC is?

The well-known on-chain data analysis platform CryptoQuant recently stated that there are five key indicators that can help investors determine whether BTC is approaching a cyclical top, and one signal has already turned red.

5 Key Indicators for Judging BTC's Peak

1. MVRV indicator

CryptoQuant pointed out that MVRV (Market Value to Realized Value) ratio is an important indicator for evaluating the valuation of BTC.

BTC MVRV will be calculated by dividing 'Total Market Cap' by 'Realized Value' to obtain a ratio.

Generally speaking, when the MVRV ratio exceeds 3.7, it means that BTC has reached a temporary valuation peak. Currently, according to CoinGlass's data, the MVRV of BTC is 2.94.

During the bull run near the peak of Bitcoin, around February 2021, MVRV reached as high as 7.

Image source: CoinGlass Bitcoin MVRV Z-Score

2. Cryptocurrency Fear and Greed Index

CryptoQuant indicates that the Crypto Fear & Greed Index is another important reference for cryptocurrencies. When the index reaches above 80, if other indicators also reveal a top signal, it may mean that BTC is approaching a temporary top.

Since November 12th, the Cryptocurrency Fear and Greed Index has been above 80 for several days, reaching 90 on November 17th and 19th, the highest level since February 2021.

Although the BTC market can continue to rise during extreme greed, CryptoQuant also reminds that this may be one of the signals that the top is about to be touched.

Image source: The Fear and Greed Index of Binance Cryptocurrency has reached 83, which is at an extreme greed level.

3. New inflow of funds

CryptoQuant pointed out that the inflow of new funds is a key factor in determining the market trend of the Cryptocurrency market, and recommends investors to follow the Market Caprise chart of BTC to monitor the inflow of funds.

Current data shows that new capital inflows are still relatively strong, indicating that BTC is in the 'bull run phase', suggesting that the market still has the potential to continue to rise.

Source: CryptoQuantCryptoQuant: The realized Market Caprise chart of BTC

4. Token Burn Indicator

CryptoQuant pointed out that the Coin Days Destroyed indicator is used to track the selling behavior of long-term Bitcoin holders.

When the indicator exceeds 15 to 20 million, it may indicate a short-term bearish signal.

As of now, the indicator shows 15.1 million, slightly exceeding the threshold, which is worth investors' continued follow.

Source: CryptoQuant CryptoQuant: Coin Days Destroyed Indicator for Japanese Tokens

5. Exchange Traffic Pulse

CryptoQuant pointed out that the Inter-Exchange Flow Pulse (IFP) is used to monitor the flow of BTC between Derivatives exchanges.

Currently, the IFP structure is still bullish, and traders continue to transfer BTC to derivatives exchange as Collateral.

Currently, the IFP is about 730,000 and is in a rising trend. In previous bull market peaks, the IFP reached 1 million, while during the bear market period at the end of 2023, it dropped to 200,000.

Source: CryptoQuant CryptoQuant: Exchange Inflow Pulse (IFP)

Analysts are optimistic about Bitcoin rising to 180,000 USD

Although investors need to pay attention to the top 5 signals, Matthew Sigel, Head of Digital Asset Research at VanEck, is optimistic about Bitcoin and predicts that it could rise to $180,000 next year.

Another institution, Bitwise's chief investment officer Matt Hougan, gave a more optimistic forecast, believing that if the government abuses monetary policy, leading to a threefold expansion of the store of value market, and BTC maintains a market share of about 7% in the market, it can break through $200,000.

Overall, currently multiple indicators show that the market is still in a bullish phase, but investors should remain cautious, closely monitor market changes, and make investment decisions based on their personal risk tolerance.

Further reading: Will the trend of BTC reverse soon? Master these 7 catch the bottom indicators to find the right time to enter the market!

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, perspectives, or conclusions in this article are applicable to their specific circumstances. Responsibility lies with the individual for investment decisions made based on this information.

The article 'When will BTC hit the peak? Data platform reveals '5 major top signals', one of which has already lit a red light' was first published in 'encryption city'.