Over time, various indicators have gradually formed in the market, which have often helped to determine the peak of Bitcoin's bull market in the past. These indicators were activated in previous cycles, and their triggers were typically seen as exit signals, indicating that a new bear market might be about to unfold. However, this cycle is different; despite Bitcoin's price having repeatedly broken historical highs, none of the indicators used to identify the cycle's top have been activated, suggesting that the current market may not yet have reached its peak.
The bull market peak indicator tracker on the Coinglass website includes 30 indicators used to monitor the progress of Bitcoin's bull market toward its peak. Key indicators include the Bitcoin bubble index, the Puell multiple, the Bitcoin rainbow chart, and the altcoin season index.
Typically, these indicators are presented in a range from 0% to 100%, where 0% means not triggered at all, and 100% indicates that the indicator has been activated. Even if only a few indicators reach 100% triggered, it is generally not sufficient to conclude that Bitcoin has peaked.
However, even though the current Bitcoin price is high, none of these 30 indicators have been triggered. Most indicators remain at low levels, and while Bitcoin's dominance is high, it still has not triggered any signals. To clearly assess whether the market is approaching its peak, at least more than half of the indicators need to be activated.
What does this mean for investors?
As no bull market peak indicators have been activated at this time, it may suggest that the Bitcoin price still has room to reach a true historical high. Although the market has recently seen a pullback, the indicator score of 0/30 indicates that it may still be a time to hold.
According to an earlier report by Bitcoinist, this was the situation a few months ago, and two months later, the indicator tracker remains unchanged. Therefore, $126,000 may not be the final peak for Bitcoin, and the market may ultimately still welcome a surge in altcoins.
If more than half of the bull market peak indicators are activated, it means that a market top is forming. Once all 30 indicators are triggered, it often signals the start of the next bear market, at which point selling at market highs may lead to a rapid price decline.
