Important information about crypto market ✍️

in powerclub •  3 days ago 

Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. Friends, if there's a correction in the market, short-term investors may panic, but the bigger fear for many is the market cycle top. During a crypto bull market, when Bitcoin hits its peak, most investors fail to exit on time, leading them to get trapped. A market can pump for months but crash in less than a week, wiping out profits. We've discussed several indicators before, like the realized cap and the behavior of short-term and long-term holders. When Bitcoin reaches a peak, long-term holders often start selling off their bags. Charts like RSI and total supply are also useful tools to determine market tops.

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When Bitcoin's supply is mostly in profit (90–99%), it's typically a sign of the market top, as seen in previous bull markets. We also monitor the Market Value to Realized Value (MVRV) score; when it surpasses 7, it's an indication that we might be at a top. A low MVRV score suggests a market bottom, as seen in previous cycles. Lastly, liquidity is a key factor. When central banks inject liquidity into the system, it often signals a market top. However, in the current cycle, liquidity hasn't increased as much as in previous ones, which means we might still have time before reaching the cycle peak. That's it for today. Thanks & have a good day!!

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