Cycle Top Signal

Definition ∞ A Cycle Top Signal refers to a technical or on-chain indicator suggesting that a cryptocurrency market cycle is approaching its peak. This signal implies that prices are reaching unsustainable levels and a significant correction may be imminent. It is a critical data point for investors seeking to identify optimal exit points or prepare for market downturns. Such signals often combine various metrics to provide a holistic market assessment.
Context ∞ The identification of a Cycle Top Signal often generates intense debate among market participants and analysts. Discussions frequently center on the reliability of specific indicators in predicting market reversals. The prevailing macroeconomic conditions and global liquidity trends significantly influence the strength and interpretation of these signals. Future market behavior will determine the accuracy of current cycle top predictions.