Market Analysis
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How does the Market Temperature work?
The Market Temperature is a sophisticated multi-factor index designed to help investors understand the current phase of the crypto market cycle. It's not just a single indicator, but a weighted average of three critical market pillars.
Valuation Metrics
We analyze the distance from Bitcoin's All-Time High. Historically, extreme proximity to ATH combined with high greed signals a potential local top.
Cycle Analysis
Using the 4-year halving cycle theory, we track how much time has passed since the last halving to estimate which phase of the bull market we are in.
Understanding the Zones
- Deep Freeze (0-20): Maximum opportunity. Sentiment is fearful, and prices are often significantly below ATH.
- Cold (20-40): Accumulation zone. The market is quiet, providing a good entry point for long-term holders.
- Neutral (40-60): Market in balance. The trend is establishing, but no extreme FOMO is present yet.
- Hot (60-80): High excitement. Retail interest is increasing, and caution is advised for new entries.
- Extreme Bubble (80-100): High risk zone. Historically, the market is severely overheated and due for a correction.