↪️ Crypto Market Cycles
Last updated
Last updated
Understanding crypto market cycles is critical to effective portfolio management and treasury strategies. Four key on-chain indicators for gauging market phases are:
Price/Bubble and Price/Non-Bubble Metrics
Quantifies current price extension from red and green regression bands
Values near 1 indicate possible local tops or bottoms respectively
Shows decreasing amplitude in Bitcoin boom/bust cycles over time
Total Cryptocurrency Market Capitalization Model
Logarithmic regression bands model overall crypto market cap over time
Upper band indicates regions of potential market cycle tops/bearish signals
Middle band provides a fair value assessment to identify bull/bear market modes
Lower band shows historical support levels that may signal undervaluation
Bitcoin Price Logarithmic Regression
Logarithmic regression lines fit Bitcoin's price performance
Red lines fit 3 previous cycle tops to indicate possible future bubble peaks
Green lines fit non-bubble data to reveal prudent accumulation zones
Relative Strength Index (RSI)
Measures momentum to identify overbought and oversold conditions
Divergence from price action signals potential trend changes
Failure swings above/below key levels flag impending market reversals