CryptoQuant named 5 signs of BTC’s fall in the near future

CryptoQuant analysts have identified five key indicators that help assess whether Bitcoin BTC $95,900.68 Bitcoin -0.35% Market capitalization $1.9 trillion VOL. 24 hours $2.36 billion is close to a peak price. One of these indicators already shows a signal that a critical point may be reached.

For example, the MVRV indicator compares the market value of Bitcoin with its realized value (the total value of all coins at the last sale price).

Thus, if the value exceeds 3.7, it may indicate the peak valuation of the asset. Currently, the indicator is 2.67, although in February 2021, it reached 7 when Bitcoin rose to $ 60,000.

Analysts drew attention to the Fear and Greed Index, which reflects market sentiment.

It is known that a value of over 80 on a scale of 100 points can signal a local price high. Since November 12, the index has been consistently above 80, and on November 17 and 19, it reached a record high of 90, the highest level since February 2021.

Also, the growth of Bitcoin 's capitalization indicates that new money is entering the market. According to CryptoQuant, the inflow of new capital remains high, which corresponds to the bullish phase of the market.

Experts pointed to the Coin Days Destroyed indicator, which tracks the sale of coins that have been inactive for a long time.

Thus, a value of more than 15−20 million may indicate a short-term decline. Currently, the indicator shows 15.1 million, which is approaching the risk zone.

Crypto analysts also talked about the inter-exchange flow (IFP), which tracks the movement of Bitcoin between wallets and derivative exchanges.

Currently, the IFP flow is 730,000, which indicates an increase in activity. In previous bullish trends, the value reached 1 million.

Thus, the current data shows that Bitcoin is in a growth phase, but there are already signs of overheating. Analysts recommend that investors keep a close eye on these indicators to avoid risks at the market peak.