Source: CoinTelegraph.com
There are five key warning signs when Bitcoin (BTC) is nearing a price peak, and one of those indicators is already flashing red, according to onchain data service CryptoQuant.
In a Nov. 19 X post, CryptoQuant shared its top indicators to watch when assessing whether or not Bitcoin’s price is nearing an unsustainable level.
MVRV Ratio
The first signal is the “MVRV ratio,” which measures Bitcoin’s market value — the sum of all coins that have been mined — against its realized value, the sum of the latest selling price of all Bitcoin in circulation.
CryptoQuant said if this is over 3.7, it typically signals that Bitcoin has reached its peak valuation for the moment. It’s currently showing a score of 2.67, per CoinGlass data.
Bitcoin’s MVRV ratio reached as high as 7 in February 2021 when Bitcoin rallied to reach a historical peak of around $60,000.
Fear & Greed Index overheats
The next indicator to watch is the Crypto Fear & Greed Index, which measures market sentiment.
When the index hits 80 out of a total score of 100 — combined with other indicators — Bitcoin could be near a local top, CryptoQuant said.
The index has been above 80 since Nov. 12 and reached as high as 90 on Nov. 17 and Nov. 19 — its highest since February 2021…..