A powerful new on-chain analysis tool called the Bitcoin Cycle Extremes indicator has been released. It’s designed to help find extreme conditions in the Bitcoin market. It attempts to answer the ultimate question of when the crypto market is at a peak or a bottom.
Of course, there are many great tools and indicators that can be looked at individually or in combination. They provide guidance in looking for confluence on your own in determining extreme market conditions. However, there is a way to automate this confluence of more indicators and put them into one common metric. Taking into account the many components and factors of the Bitcoin market aims to identify potential peaks and lows more accurately.
Cycle Extremes, a new tool from Glassnode, aims precisely to create such an indicator that does not rely on a single on-chain data set but combines several fundamental metrics into one synergetic whole. Thus, if an extreme conditions signal appeared on this combined metric, its strength would be much greater than those of the separate components.
A basic version of the Cycle Extremes indicator was recently presented by Glassnode lead analyst @_Checkmatey_ on his Twitter feed. On that occasion, he stated that “confluence is your friend.”
In addition to the basic version, there is also a second version with oscillators, which we will present below.