Cycle Exhaustion Signal

Definition ∞ A cycle exhaustion signal is an indicator suggesting that a market trend, either upward or downward, is approaching its conclusion. These signals are typically derived from technical analysis or on-chain metrics, showing a decrease in momentum or a shift in participant behavior. Identifying such signals can precede a reversal in asset prices. It helps traders anticipate market turning points.
Context ∞ Traders and analysts frequently reference cycle exhaustion signals to predict potential market reversals in cryptocurrency prices. Discussions often involve comparing current market behavior to historical patterns that preceded significant price corrections or rallies. Observing these signals provides context for understanding market volatility and strategic positioning.