As Bitcoin breaks through $73,000 once again, investors are eagerly waiting to see when it will reach its peak. In this article, we will provide you with some signals to watch out for in order to identify trends and maximize profits.
Time Cycles
Cryptocurrency analyst Virtual Bacon predicts that he will exit the market by the end of 2025, regardless of market performance. This timeframe is based on the Bitcoin halving cycle and historical bull market durations. Looking at the chart below from Glassnode, we can see that the previous two bull market cycles had similar patterns, reaching a phase peak two years after the cycle low, followed by a rapid decline into a bear market. The current cycle (black line) is currently in an upward phase and may reach a new peak by the end of 2025.
Bitcoin 200-day and 21-week EMA
Virtual Bacon also suggests that investors should pay attention to Bitcoin’s 200-day and 21-week Exponential Moving Averages (EMA). As shown in the chart below, the current Bitcoin price is still far above the 200-day moving average.
Bitcoin Rainbow Chart
The Bitcoin Rainbow Chart maps the evolution of Bitcoin’s price over time and indicates whether it may be approaching a top or bottom with colored bands. The closer the price is to the red zone, the more likely it is to reach a top, while the closer it is to the blue zone, the more likely it is to approach a bottom. Currently, Bitcoin is in the yellow “HODL” state, indicating a holding pattern.
Pi Cycle Top Indicator
The Pi Cycle Top Indicator uses the 111-day Moving Average (111DMA) and the multiple of the 350-day Moving Average (350DMAx2) to predict Bitcoin’s top. When the 111DMA moves upward and crosses the 350DMAx2 line, it is a possible signal that Bitcoin is at or near its top.
Altcoin Frenzy
In the later stages of a bull market, funds gradually flow from Bitcoin to altcoins and even various low-value projects. The significant features of this stage include altcoins experiencing significant surges of several times or even tens of times their value, exaggerated valuations reaching billions of dollars, and the emergence of new projects taking advantage of the bullish market sentiment to profit.
Bitcoin Reserves on Exchanges
A notable characteristic of the late stage of a bull market is a large amount of Bitcoin being transferred to exchanges for profit-taking, which gradually leads to a decline in Bitcoin’s price. Currently, the Bitcoin reserves on centralized exchanges are declining, but if the data suddenly increases in the future, it could be a warning sign.
Google Search Volume
This reflects the level of public interest in Bitcoin. Typically, when search volume surges, it is a symbol of the end of a bull market. Some Chinese Key Opinion Leaders (KOLs) have even jokingly said on social media platforms that if they want to predict Bitcoin’s price, they just need to look at the Google search volume.
Related Reports:
– Why hasn’t Bitcoin experienced a major correction yet? Is there still an opportunity to get on board?
– DWF: The bull market is coming, and the market conditions are healthy and sustainable! Analyst: Bitcoin could rise to $45,000 before the halving.
– Is Bitcoin in a “mini bull market” due to slowing US bonds and inflation? QCP Capital: It will only start declining due to new regulations.