Is the Crypto Market Nearing a Local Top?

The trend extends beyond tech. CryptoQuant data revealed that Bitcoins correlation with both the S&P 500 and gold is also weakening, suggesting the asset is no longer moving in tandem with broader risk markets or traditional hedges.

Even so, analysts caution against interpreting these signals as the end of the cycle. Instead, some argue they point to a typical reset within a broader uptrend.

Ted Pillows emphasized that during bullish cycles, pullbacks of around 20%–30% are a typical part of the trend before momentum resumes upward.

“Wouldnt be the first time a dip shows up before the next leg,” he said.

Taken together, rising altcoin speculation, seasonal warning signals, and Bitcoins weakening ties to traditional markets all point to a fragile setup. While some see this as a sign that a local top is forming, others argue it may simply mark the kind of correction that often precedes another rally. The upcoming weeks will likely determine which path the market takes next.