Part 6/9:
This is the period of euphoria, characterized by extreme excitement and parabolic price movements. Investors experience an explosive rise in market activity, often resulting in astronomical gains. The market becomes saturated with retail investors, and conversations focus on speculative and often nonsensical assets.
During this peak, smart institutional investors often begin to exit their positions while the retail crowd is caught up in the frenzy. Recognizing the signs of topping out—like slowing M2 growth, waning Bitcoin dominance, and ETHBTC hitting resistance—is critical. Your exit plan needs to be in full effect as the risk of a downturn increases significantly.