Bitcoin Cycle Top Is Not In 🚨
5 Best On-Chain Indicators To Predict The Crypto Market Top
1. MVRV Z-Score
It uses a z-score standard deviation between market value and realised value (MVRV) to identify $BTC market tops and bottoms.
When MVRV Z-Score goes above 6.8, its time to start taking profits aggressively.
2. Percent Addresses in Profit
It tells the total percentage of addresses that are in profitable.
The longer we have over 95% of addresses in profit, the more likely a cycle top is in.
3. On-chain transaction fees
It simply tells how much transaction fee people are paying.
High transaction fees simply mean that there is a spike in demand.
The transaction fees come down drastically just after the market peaks.
4. Dormancy Flow
Dormancy Flow means the average age of coins spent.
Dormancy Flow has peaked significantly suggesting the average age of coins spent is significantly higher in 2024.
Z- Scored typically see cycle tops just 3 months later.
5. Net Unrealized PnL
It simply means how many entities are in net unrealised profit.
NUPL in the "Euphoria" zone (more than 75% of participants in profit) is a classic marker for froth and a zone for increased caution.
