Cycle Top Confirmation

Definition ∞ Cycle Top Confirmation refers to a set of technical or on-chain indicators that collectively signal the probable end of an upward market cycle. These indicators typically involve divergences in price action, declining momentum, or shifts in investor behavior. It represents a confluence of data points suggesting that a market peak has been reached or is imminent. This analysis helps assess market phase transitions.
Context ∞ In cryptocurrency markets, analysts frequently seek Cycle Top Confirmation to advise investors on risk management and profit-taking strategies. News commentary often highlights specific metrics, such as funding rates, exchange inflows, or long-term holder distribution, as components of this confirmation. Understanding these signals is vital for interpreting market narratives surrounding potential price reversals.