There are five main signs that warn of the formation of a local ceiling; currently only one of them is giving a bearish signal. This was reported by CryptoQuant.
Bitcoin Hits ATH: Is It Time to Sell or Hold?
MVRV > 3.7 has historically indicated 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 of these criteria is the coefficient MVRV. The critical value is 3.7, but it is currently at 2.67. In February 2021, during the rally, the mark jumped to 7 as Bitcoin set ATH today stands at 60 000 $.
The next metric is cryptocurrency fear and greed index. According to CryptoQuant, when it reaches 80 out of 100 in combination with other indicators, Bitcoin may be close to a local top.
Fear & Greed album over 80
The Crypto Fear & Greed Index is a popular tool for measuring market sentiment, specifically greed.
In general, when the index is higher than a value of 80, caution is advised.
Although the market may continue to rise during periods of high greed, this often… pic.twitter.com/PhOOe6ThkN
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
On November 12, the index exceeded 80, and on November 17 and 19 it reached 90 – the highest value since February 2021.
The third sign – capital produced – showing the amount of new money entering the market.
Plenty of fresh cash flow
For prices to remain strong, new money must flow into the market, without sufficient inflows, price pressure increases.
Use Realized Cap Growth (365D) to track this trend effectively. pic.twitter.com/tz6pF0eDg9
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
Currently, he talks about maintaining a relatively high level of earnings, which confirms that Bitcoin is in a bullish phase.
The next sign Dog Days Destroyed. It shows coin sales activity by custodians.
Long time owners for sale
Market tops often occur when long-term Bitcoin is reactivated.
Look for Dog Days Destroyed with a spin above 15-20 million as a key indicator. 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 indicator for the price, experts said. The CDD is currently equal to 15.1 million.
The most recent indicator considered by analysts – Inter-Exchange Flow Pulse (IFP), which tracks the movement of bitcoins to and from derivatives exchanges. According to CryptoQuant, IFP continues to display a supportive structure.
Inter-Exchange Flow Pulse (IFP) is turning bearish
This data flow reflects market sentiment, with increases (or decreases) in Bitcoin moving to (or from) derivative exchanges often associated with bull (or bear) runs. pic.twitter.com/85YAtH9cXB
— CryptoQuant.com (@cryptoquant_com) November 19, 2024
Currently, the metric is around 730,000 and rising. In previous bullruns, IFP reached 1 million and fell to 200,000 during the bear market at the end of 2023.
On the evening of November 19, values of the first digital currency rewrote at levels above $93,900 trade began options on spot bitcoinETF by BlackRock.
Bernstein previously call catalyst for digital gold price growth to $200,000 in 2025.
Let’s remember that in Glassnode was notedthat the price of the first cryptocurrency has not reached the levels for hodlers to take profits.
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2024-11-20 09:55:00
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How effective are the indicators identified by CryptoQuant in forecasting Bitcoin’s price movements in the current market context?
The CryptoQuant has highlighted several potential signs that indicate a Bitcoin rally might be coming soon. Can you provide a summary of these signs and discuss their validity in the current market scenario? How reliable are these indicators in predicting future price movements for Bitcoin?
