Definition ∞ A market cycle top is the highest price point or peak achieved by a digital asset or an entire market during a specific market cycle, after which prices typically begin a sustained decline. This phase is characterized by extreme optimism, high trading volumes, and often irrational exuberance among investors. Identifying a market cycle top is challenging in real-time. It often precedes a significant market correction or bear market.
Context ∞ News reports often speculate on whether the cryptocurrency market is approaching or has reached a market cycle top, particularly during periods of rapid price appreciation. Analysts use various indicators, including on-chain data and historical patterns, to assess this possibility. Understanding this concept is critical for anticipating major shifts in market direction.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
