Five signs that the market is approaching its peak:
Sustained high funding rates (up to 2-3 months or longer): If funding rates remain high for a long time, it usually means that the market is overcrowded and the risk of adjustment increases.
Too much unrealized profits: When a large number of investors have not yet realized their book profits, the potential risk of the market increases, which may lead to drastic adjustments.
MVRV ratio exceeds 5: If MVRV (market value to real value ratio) exceeds 5, it usually indicates that the market is overheated and the risk of bubble is increasing.
Bitcoin market share drops to 40% or less: Bitcoin's dominance is declining, which may indicate that funds are flowing to other areas, suggesting that the market is less concentrated and less stable.
Cryptocurrency becomes the focus of public discussion: When cryptocurrency becomes a hot topic of widespread discussion, it may mean that market sentiment is too optimistic and you need to be alert to possible risks.
