Bitcoin (CRYPTO:BTC) has achieved a new milestone, hitting an all-time high of $94,040.
The surge has prompted investors to weigh whether to sell or hold, with key on-chain metrics providing guidance on potential market tops.
According to CryptoQuant, the Market Value to Realised Value (MVRV) ratio is a critical indicator.
Historically, an MVRV ratio above 3.7 signals long-term market tops and suggests selling opportunities.
Currently, the ratio stands at 2.5, indicating significant unrealised profits but also suggesting that BTC has not yet peaked.
The Crypto Fear and Greed Index, which measures market sentiment, is another metric to watch.
It is currently at 83, reflecting extreme greed.
"Greedy sentiment suggests proceeding with caution," according to CryptoQuant, as these levels often precede a price correction.
The Coin Days Destroyed (CDD) metric highlights long-term holder activity by tracking dormant BTC being moved.
A spike above 15-20 million typically signals that long-term holders are realising profits, which can precede market tops.
CryptoQuant analysts noted that monitoring this metric is crucial as BTC continues its parabolic run.
Realised capitalisation growth is another important factor.
This metric tracks the flow of new money entering the market, which is essential for sustaining rallies.
A decline in realised cap growth suggests a slowdown in liquidity.
Additionally, a bearish signal is indicated by reduced Inter-Exchange Flow Pulse (IFP), reflecting less BTC moving between derivative exchanges.
At the time of reporting, the Bitcoin price was $94,796.89.