Catching a good entry is just half of the problem. Everyone will tell you to buy the dip, but no one tells you when to offload all your bags.
Here are 5 key factors that may indicate the bull market has topped 🧵
Every bull and bear market has a similar structure, so understanding it is essential to come out on top.
Imo the accumulation phase has ended and we're in the first phase of the markup. Despite this, the market offers us a chance to buy at cheaper prices thanks to this dip.
Before we start, it's worth mentioning that there are 2 types of top indicators for the crypto market. Fundamental and technical indicators.
We'll kick off with the technical indicators and then move to the fundamental ones ⬇️
1/ Weekly RSI
An RSI chart is a simple oscillator graph that shows a value reading between 0 and 100. The lower the number is, the more oversold the asset is. And vice-versa.
Based on the RSI, I would say now we're somewhere around November 2020.
2/ Pi Cycle Indicator
This metric shows when BTC becomes significantly overheated (the shorter MA reaches the levels of the larger MA), and has historically been a good indicator for cycle tops.
As you can see, we're far from reaching the top yet.
3/ 200 Week Moving Average
Historically, when we see red dots assigned on the chart, this has been a good time to sell. Periods, where the price dots are purple and close to the 200-week MA, have historically been good buys.
We're around in the middle of the bull market imo.
4/ Coinbase ranking
A very reliable indicator is when the Coinbase app is the #1 downloaded app on the App Store. It has a good track record, predicting the 2 tops in 2021 and the top in 2017.
As you can see now, we still have a long way to go to reach #1.
5/ Google Trends
Google Trends is a great indicator for showing how much retail is invested and interested in the crypto market.
An ATH in trends suggests retail is fully back in the market and traditionally they serve as exit liquidity. Same thing happened in 2017 and 2021.
Note: In my opinion, it's wise to take profits whenever it seems like we've reached the peak. You may not get the best ROI at the end, but you'll secure at least some decent gains.
Since no one can really predict the exact top, avoid becoming a community member during the next bear market, and NEVER marry your bags.
When you decide to sell, consider liquidating all your holdings rather than waiting for one token to pump further, market peaks are generally widespread.
I put a lot of effort into these threads, so If you find them useful:
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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