Definition ∞ A cycle top represents the highest price point reached by an asset within a defined market cycle. This peak typically occurs after an extended period of upward price movement and strong demand. It signals a point where buying pressure begins to diminish, and selling pressure increases. Identifying a cycle top is important for market participants to assess potential reversals.
Context ∞ In cryptocurrency markets, cycle tops are often associated with periods of extreme euphoria and widespread retail participation. On-chain metrics, such as profit realization by long-term holders, can help identify these market peaks. Following a cycle top, assets frequently experience significant corrections or enter a prolonged bearish phase, which is a key consideration for investment strategies.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
