Market Top Signal

Definition ∞ A Market Top Signal is an indicator suggesting that an asset’s price has reached or is approaching its peak before a potential reversal or significant decline. These signals are often derived from technical analysis patterns, on-chain metrics, or sentiment indicators that historically precede market downturns. Identifying such a signal helps investors assess the probability of an impending bearish trend. It serves as a warning sign for potential price corrections.
Context ∞ Crypto news regularly discusses various Market Top Signals as analysts attempt to predict turning points in asset prices. These discussions often involve examining historical data and current market behavior to determine the reliability of such indicators. Understanding these signals is important for investors seeking to manage risk and adjust their portfolios in anticipation of market shifts. It provides a framework for evaluating market sustainability.