Ways to Spot the Bitcoin Market Peak

Predicting the 'top' of any market is difficult. Here are some trends and markers to help spot the Bitcoin market peak.

Bitcoin is highly volatile which means there is great opportunity, but also risk. So the question; is there any advice or ways to spot Bitcoin’s market peak? Additionally Bitcoin dictates the market. So around a month after Bitcoin peaks the rest of the crypto market crashes.

Historically there is between an 80-90% price drop after Bitcoin peaks. So you want to make sure you sell towards the top, not necessarily at the peak. However you want to sell at a profit and avoid buying at the time. You want to follow the sound advice of buying low and selling high.

Although it is hard enough for experienced investors to call the top. Let alone to someone that is new to it all. In fact there have been widely differing Bitcoin price predictions. There are those of 2022 and 2023 as you can see here. No one has a crystal ball to know the final price.

Ways to spot the Bitcoin market peak

However there are Bitcoin trends to follow and various ways you can tell if the market is reaching its peak. There are some market indicators that are available for anyone to access.

These indicators are charts showing the Puell Multiple, MVRV Z-score and the Realised Cap HODL Waves. Don’t worry, they aren’t as complicated as they sound.

The Puell Multiple indicator compares the price of newly mined Bitcoin to the average price. MVRV Z-score compares the average price people paid for Bitcoin to what the price is at the time. Realised Cap HODL waves shows the realised price of Bitcoins within given time frames. When the charts are at extremes then it will be a good time to sell.

They are clearly outlined in this article; Did Bitcoin’s bull market peak by Mark Helfman. Mark is a Bitcoin and crypto writer and analyst with recognised industry experience.

Additionally to the market indicators you will notice a lot of market euphoria at the peak of the cycle. This is when people think Bitcoin is going to continue going higher and higher. It is a sure sign that Bitcoin is at it’s peak.

This is the point when you will see a lot of YouTube videos about getting rich on Bitcoin.