Bitcoin (BTC) Market Peak May Be Nearing as CryptoQuant Cites Key Metrics Including the Fear & Greed Index

Amid a new peak value for Bitcoin, CryptoQuant cites metrics like the Fear & Greed Index, money flow, and UTXO profits to suggest a potential market peak.

Bitcoin price hit a new all-time high during Monday’s session, yet several metrics are signaling a potential market peak.

Bitcoin price soared to a new all-time high on Monday. The world’s largest cryptocurrency hit a new peak value amid a broader market rally that saw prices rise over 93,000.

Following this latest surge, on-chain analytics platform CryptoQuant raised questions about whether it is time to sell or hold. Several key metrics were closely monitored by analysts at CryptoQuant to better understand the potential direction of the market.

Fear & Greed Index Signals Caution

One of the key indicators under review is the Crypto Fear & Greed Index, which is widely used to gauge market sentiment. The index, currently above 80, reflects heightened greed among investors.

Historically, such levels have often preceded market tops, suggesting the need for caution. While the market can sustain upward momentum during periods of extreme greed, the likelihood of a reversal increases as the index remains elevated.

New Money Flow & Long-term Holding Behaviour

Another critical factor affecting Bitcoin’s price sustainability is the flow of new capital into the market. CryptoQuant pointed out that insufficient new money inflow could increase selling pressure.

Realized Cap Growth over a 365-day period is being monitored as a tool to track this trend. Without sufficient inflows, sustaining the current rally could prove challenging, potentially marking a near-term peak.

Further, long-term holders’ behavior is another crucial metric drawing attention. CryptoQuant observed that market tops often coincide with the activation of dormant Bitcoin. Coin Days Destroyed, a measure of long-held Bitcoin being moved, has reached levels exceeding 15–20 million, which historically aligns with market tops.

Bitcoin Exchange Flows & UTXOs

Additionally, exchange flow data provides further insights. The Inter-Exchange Flow Pulse (IFP) tracks Bitcoin movement between spot and derivative exchanges. Recent data indicates bearish signals as Bitcoin flows shift toward derivative platforms, often a precursor to downward price adjustments.

Previously, CryptoQuant’s CEO pointed out the heightened euphoria driving the current rally. With 99.3% of Bitcoin’s Unspent Transaction Outputs (UTXOs) in profit, the market is in an extremely bullish phase. While such phases have historically lasted three to twelve months, analysts are urging caution due to the possibility of sudden reversals.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.