Bitcoin’s bull market indicator is nearing overheated territory, hinting at a potential market cooldown or trend reversal.
An analyst suggests investors wait for calmer zones instead of entering during an overheated bullish phase.
Bitcoin seems to be enjoying a bright future, but some analysts are becoming wary. According to Arab Chain, an on-chain analyst at CryptoQuant, the market is currently in a bullish zone.
But it’s not just a simple bullish trend; the market cycle indicator he uses, the Bitcoin Bull and Bear Market Cycle Indicator, suggests that conditions are approaching what’s known as an overheated bull zone. In simple terms, this means the euphoria may be running out of control.
Bitcoin Bull and Bear Market Cycle Indicator | Source: CryptoQuant
Bitcoin’s Overheated Rally May Signal a Pullback Soon
This overheated zone usually occurs when the price has risen too quickly, too high, and for too long. According to Arab Chain, this often marks the beginning of a corr
