Bitcoin Price: Beware, Warning Signs Are Multiplying

The crypto market is in turmoil, and Bitcoin may be approaching a critical level. According to a recent analysis, several key indicators, such as the MVRV ratio and the fear and greed index, are signaling warning signs of a price peak but especially an imminent collapse of BTC. Here’s an overview of these indicators.

Five signs indicating a local peak for Bitcoin or an imminent collapse!

In a recent analysis, five main warning signs suggest that the price of BTC may be approaching a local peak:

• MVRV Ratio

The MVRV ratio (Market Value to Realized Value) is a crucial indicator for assessing Bitcoin’s valuation. It compares the total market value of all mined coins to their realized value, which is the most recent selling price of each BTC in circulation. A ratio above 3.7 generally indicates that Bitcoin has reached a temporary maximum valuation. Currently, this ratio is 2.67, well below the critical threshold, but it remains to be monitored closely.

• Fear and Greed Index

The fear and greed index of the crypto market measures the general sentiment of investors. A score of 80 out of 100, combined with other indicators, can signal a local peak for Bitcoin. Since November 12, this index has been above 80, even reaching 90 on November 17 and 19, its highest level since February 2021.

• Influx of New Capital

The influx of new capital is another important indicator. Without a significant entry of new funds, cryptocurrency prices tend to stagnate and then decline. Currently, the growth of realized capital shows that the flows of new capital remain high, indicating that Bitcoin is still in a bullish phase.

• Indicator of Days Coins Destroyed

This indicator assesses whether long-term Bitcoin holders are selling their assets. It measures the movement of BTC that has remained inactive for long periods. If this indicator exceeds 15-20 million, it could signal short-term bearish pressure. Currently, it shows a score of 15.1 million.

• Inter-Exchange Flows

The inter-exchange flow monitors the movement of Bitcoin to and from derivatives platforms. A high flow to these platforms indicates that traders are using BTC as collateral, which is a bullish sign. Currently, this indicator shows a bullish structure, with increasing flows.

Future Prospects

Although some indicators show signs of overheating, others, such as inter-exchange flow and influx of new capital, remain bullish. If these trends continue, Bitcoin may soon reach $100,000. However, investors need to remain cautious and monitor these indicators closely.

In summary, some indicators suggest that Bitcoin may be approaching a historical peak, while others indicate that the market could collapse. Investors must stay vigilant and monitor these indicators to navigate this volatile market cautiously.