There are rumors in the market that the "altcoin season has ended," but many traders and crypto KOLs believe that the current stage is still the mid-point of this Bull market, not its end. Crypto KOL Atlas pointed out that no typical market top signals have appeared, and based on years of observation, listed 10 common market top indicators.
He emphasized that when 5 of these signals appear, investors should consider selling their assets. Here are the key signals proposed by Atlas:
1. Cryptocurrency Social Attention
These signals may not be perfect, but there is an obvious sign that can help identify the top:
When people around you suddenly show strong interest in cryptocurrency and start asking for investment advice about related tokens, it usually indicates that the market is near its peak.
2. Market Excessive Optimism
In the early Bull market, many people remain cautious, but as prices continue to rise, this skeptical attitude gradually disappears, and market sentiment shifts from fear to excessive optimism. When the market is filled with no bearish views and everyone believes the market will continue to rise, the top may be quietly approaching.
3. Cryptocurrency Enters Mainstream Media
Even though cryptocurrency has appeared in mainstream media many times, when you see cryptocurrency on major entertainment shows (such as Jimmy Fallon), it usually signals that the market is near the cycle's peak.
4. Positive News Fails to Drive Price Increase
When strong positive news cannot effectively drive market prices up, and market sentiment remains bullish, but prices begin to slowly decline, it suggests weakening buying power. Meanwhile, any negative news will trigger a sharp price correction.
5. Collapse of Upward Trend
The market gradually shifts from creating new highs to forming lower lows, which is usually an early signal of market collapse. Although it appears to be consolidating on the surface, it actually implies a weakening market momentum.
6. Coinbase App Tops the List
When a cryptocurrency trading platform like Coinbase appears at the top of the US app store rankings, it usually indicates that retail FOMO (fear of missing out) has reached its peak. Although prices may continue to rise, it is a signal for investors to start considering selling assets in batches.
7. Massive Profit Showing Behavior
On social media, especially in the crypto Twitter realm, when it's filled with people showing off trading profits, luxury cars, expensive watches, and parties, it usually indicates that the market has reached a greedy stage. At this point, it's typically time to start considering reducing positions.
8. Novice Investors Resigning
Some new investors who have just entered the market, after a few successful trades, will confidently announce their resignation from 9-to-5 jobs to become full-time cryptocurrency traders. This behavior, often triggered by a big win, is usually a sign that the market is near its peak.
9. Reheating "Abandoned" Projects
When market sentiment is overly high, even projects that have been forgotten by the market may reappear and gain attention. Such a situation usually indicates that the bull market has entered its late stage, and market bubbles will become increasingly apparent.
10. Crazy Price Predictions Everywhere
At the end of a bull market, numerous extreme price predictions emerge, with many people firmly believing that certain tokens can reach unrealistic prices. However, the real situation at this point is that no one can accurately predict the market's top. Therefore, more attention should be focused on how to lock in profits at the right time, rather than blindly predicting the future.
Currently, the market has not yet shown clear top signals, which also means that this bull market may not have ended. However, as time progresses, when the above five signals appear, investors should start considering reducing positions and locking in profits. This article provides a valuable reference framework to help investors identify changes in market trends and reminds everyone to remain cautious and not make irrational decisions due to excessive greed or fear.
