Was this the top??

In cryptocurrency there are two types of tops– long-term tops and local tops. The long-term top is the highest price a crypto coin or token will reach during in a crypto market cycle

Until the long-term tops come, we are almost guaranteed to see hundreds of local tops. As the name suggests, local tops are the highest price a crypto coin will reach in a shorter timeframe

🔎What Causes Altcoin Tops?🔎

When a cryptocurrency’s price starts to explode, there is usually some news or event that is fueling that price action. An example of such a causal factor is a listing by Binance or Coinbase

The key takeaway here is that the effect these kinds of events and announcements have on the price of an altcoin are intense but short lived

🕵️‍♂‍What Causes Bitcoin Tops?🕵️‍♂‍

To cause a blow off top for Bitcoin, a lot of money is required. As far as I can tell, there are only two places this amount of money can come from: institutions and untapped markets

Institutions in the United States have been itching to dip their toes in the crypto game, and the only thing stopping them is the lack of a safe and regulated way of doing so, i.e. an ETF

In terms of untapped markets, China comes to mind. It has the second largest economy in the world, and cryptocurrency has technically been banned since 2017

Recently, Chinese officials called Bitcoin a QUOTE ‘investment alternative’ and noted that they are working on regulatory framework to make it possible to invest in cryptocurrencies again

👀How To Spot The Top👀

To spot a local top, the first thing you need to look for is a blow off top. To do this, open up the trading terminal of your favorite cryptocurrency exchange and set it to full screen

Next, remove all the indicators and set the timeframe to daily. Do you see parabolic price action that seems unsustainable? If you’re not sure, switch the 4-hour time

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