Bull markets are not confusing; grasp the peak signals to easily avoid losses!
Master the peak signals of a bull market to escape in time and avoid losses!
During a bull market, be vigilant for the following peak signals:
1. Price: If the market index rises more than twice and Bitcoin rises 2-3 times, while it consolidates and altcoins rise broadly, be cautious.
2. On-chain transaction volume: During a bull market, trading volume increases, but if prices reach new highs while transaction volume decreases, it is a peak signal.
3. Leverage and lending: A surge in lending in the DeFi market indicates high market sentiment, and high liquidation risks imply significant leverage risks.
4. New wallets: An explosion of new wallets in the later stages of a bull market, especially when retail investors are opening accounts in large numbers, requires caution.
5. Regulatory policies: Sensitive market policies, such as banning ICOs or clearing mining farms, can trigger the end of a bull market.
6. Institutional funds: The direction of institutional funds serves as a barometer; a reduction or shift signals the end of the bull market.
7. Market cap and valuation: If a cryptocurrency's market cap and valuation deviate from the fundamentals, such as DOGE's market cap soaring, it is a sign of overheating.
8. Total market cap: If the total market cap of the crypto market accounts for an excessively high proportion of global GDP, such as over 3.5%, it indicates a bubble.
9. Media opinion: When mainstream media extensively promotes a bull market without a peak, caution is warranted.
10. Market correction: A sharp drop in a single day or prolonged fluctuations may signal an outflow of funds.
11. Discussions around you: When many people are discussing buying cryptocurrencies, especially when many newcomers are entering the market, it often marks the end of the bull market.
Puppies' washout is over, ready to take off at any time.
