CryptoQuant has identified five key indicators that warn of a local peak formation, with only one currently signaling a bearish trend.
Bitcoin Hits ATH: Is It Time to Sell or Hold?
MVRV > 3.7 has historically marked market tops.
Explore these 4 additional key metrics to better understand market timing and make more informed decisions.
Details below ? pic.twitter.com/ewavOhofBR
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
One such metric is the MVRV ratio. A critical level is 3.7, but it currently stands at 2.67. In February 2021, during a rally, the indicator surged to 7 when Bitcoin reached its ATH near $60,000.
The next metric is the cryptocurrency Fear and Greed Index. According to CryptoQuant, when it hits 80 out of 100 in combination with other indicators, Bitcoin may be near a local peak.
Fear & Greed Index above 80
The Crypto Fear & Greed Index is a popular tool for gauging market sentiment, particularly greed.
Generally, when the index exceeds a value of 80, caution is advised.
While the market can continue to rise during times of high greed, this often… pic.twitter.com/PhOOe6ThkN
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
Since November 12, the index has exceeded 80, reaching 90 on November 17 and 19 — the highest level since February 2021.
The third signal — realized capital — shows how much new money is entering the market.
Insufficient New Money Flow
For prices to stay strong, new money must flow into the market, without enough inflow, price pressure increases.
Use Realized Cap Growth (365D) to monitor this trend effectively. pic.twitter.com/tz6pF0eDg9
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
Currently, it indicates relatively high inflows, confirming Bitcoin’s position in a bullish phase.
The next indicator is Coin Days Destroyed, which shows the selling activity of coins by holders.
Long-Term Holders Are Selling
Market tops often occur when long-held Bitcoin is reactivated.
Watch for Coin Days Destroyed spiking above 15–20 million as a key signal. pic.twitter.com/WIlNsYuVy1
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
If the metric rises above 15–20 million, it could be a short-term bearish signal for the price, experts noted. Currently, CDD stands at 15.1 million.
The last indicator analyzed by experts is the Inter-Exchange Flow Pulse (IFP), which tracks the movement of bitcoins to and from derivative exchanges. According to CryptoQuant, IFP still shows a bullish structure.
Inter-Exchange Flow Pulse (IFP) turns bearish
This flow data reflects market sentiment, with an increase (or decrease) in Bitcoin moving to (or from) derivative exchanges often correlating with bull (or bear) runs. pic.twitter.com/85YAtH9cXB
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
Currently, the metric is around 730,000 and is trending upwards. In previous bull runs, IFP reached 1 million and fell to 200,000 during the bear market at the end of 2023.
On the evening of November 19, the first cryptocurrency’s quotes reached a new all-time high above $93,900. The trigger may have been the excitement surrounding the launch of trading options on BlackRock’s spot Bitcoin ETF.
Earlier, Bernstein identified catalysts for the digital gold’s price rise to $200,000 by 2025.
Glassnode noted that the price of the first cryptocurrency has not reached levels for profit-taking by holders.