Five Signs the Market is Approaching Its Peak
1. High Funding Rates: If they remain elevated for an extended period (2 - 3 months or more), it indicates market overcrowding and hidden adjustment risks.
2. Accumulation of Unrealized Profits: The accumulation of wealth on investors' accounts without realization can increase market risks and easily disrupt balance.
3. MVRV Ratio Exceeds 5: When the ratio is above 5, the market is overheated with a risk of bubble burst, and investors need to be cautious.
4. Bitcoin's Share Decreases: If its share drops to 40% or lower, it may indicate that funds are flowing elsewhere, suggesting the market is nearing its peak, and risks should not be ignored.
5. A Hot Topic of Public Discussion: When cryptocurrencies are widely discussed, it may indicate overly optimistic market sentiment, and investors should respond cautiously to risks.
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