Leading Indicators Show You're Getting Closer to the Peak of the Bull Market

Navigating a rising market is interesting, but the timing of exit orders is the key to locking in profits. Here are the clearest signs that the cycle may peak, along with feasible strategies to protect your profits and avoid a collapse.

1. Friends and family start asking about cryptocurrency Signal: When individuals who were previously uninterested in cryptocurrencies—those who have never cared before—begin to inquire about investments, that is often a sign of the late stage of the cycle. Reason: Retail investors often participate in the market when the FOMO mentality (fear of missing out) reaches its peak, indicating that the market is overextended. Example: "Is now the right time to buy Bitcoin at $70,000?" What to do: Avoid chasing after strength. If others have just joined, it may be time for you to start getting out.
2. Flex culture of social networks Signal: Posts about luxury cars, watches, and huge profits flood your timeline. Cause: Overconfidence and greed dominate when traders accept unnecessary risks, believing that the market can only go higher. What to do: Follow your profit-taking strategy. This is the time to be cautious, not reckless.
3. The market overlooks good news Signal: Positive developments cannot push prices higher. Reason: This shows that the buyer is exhausted, as most participants are already in the market, causing the price momentum to decrease. What to do: Start expanding the position. The sluggish market often precedes a reversal.
4. Market structure failure Signal: Price pattern transition from higher high and higher low to lower high and lower low. Reason: The loss of buying power indicates the possibility of a reverse trend. What to do: Tighten stop orders and prepare for adjustments. Don't wait until the market price drops completely before adjusting.
5. Cryptocurrency app leads App Store rankings. Signal: Cryptocurrency-related apps dominate the top rankings on app stores. Reason: This reflects the increasing retail frenzy, often coinciding with the market reaching its peak. What to do: Gradually take profit. History shows that excessive retail participation often leads to a period of decline.
6. Common optimistic psychology Signal: Everyone, from influential people to analysts, is too optimistic, rejecting all pessimistic prospects. Reason: A market no one sees the risk of price decline is often too hot. What to do: Look for counter-trend signals. Do not over-invest during the peak euphoria period.
7. The exaggeration of mainstream media Signal: Cryptocurrency headlines dominate mainstream news, promising a 'financial revolution'. Reason: The media's attention is usually slower than market trends, signaling the end phase of a price increase. What to do: Be practical. Trust data and charts rather than catchy headlines.
8. Everyone quits their job to do full-time trading. Signal: Stories of new traders leaving stable careers to focus solely on trading are becoming increasingly popular. Reason: Overconfidence and lack of experience often lead to risky decisions in the late stages of a bull market. What to do: Maintain discipline. Ensure risk management remains a top priority.
9. Older projects are experiencing sudden pumping Signal: Old projects, non-functioning ones suddenly become popular and skyrocket in price. Reason: This reflects excessive speculation and desperate search for the "next big thing" as opportunities become increasingly scarce. What to do: Avoid these speculative games. Focus on projects with real utility and long-term potential.
10. Predicting extreme prices Signal: Influencers and analysts suggest unreasonable targets such as "1 million dollars of Bitcoin in six months". Reason: These predictions often signal an extremely bullish market. What to do: Focus on actual results. Stick to your plan and don't get carried away by muscle fanaticism. Practical tips to maximize profits and minimize risks Establish and adhere to Profit Taking Plan: Determine in advance the exit points based on your investment goals. For example, selling 20% of your shares with a 2x profit, 30% with a 5x profit, etc. Move to safer assets: When the risk increases, consider reallocating money into stablecoins, Bitcoin, or other low-volatility assets. Be cautious of Parabolic movements: When prices rise vertically, the market often reaches its peak. Do not hesitate to protect your profits. Follow macro trends: Global factors such as interest rates, regulatory changes, and geopolitical events can significantly impact the cryptocurrency market. Always leading the trend Riding the exciting price surge in the market, but it's important to remember that no upward trend lasts forever. The smartest investors prepare for a downturn while the party is still going on. Control your emotions, make an exit plan, and avoid the traps of greed. DYOR! #Write2Win #Write&Earn $BTC {future}(BTCUSDT)