Ah, the million-dollar question – “When is that big bull run coming?” That’s what’s on every crypto investor’s mind. For those dreaming of hitting it big without less of a safety net, there are few markets you could invest in that cater to your desires as much as crypto.
It’s a particularly volatile market, as Ethereum saw an astounding 9,000% climb, recently reaching 4,000 USD. That is still trumped by Bitcoin’s incredible 16,000% rise. People keep saying the Bitcoin is going to stop rising, it quickly went above 10,000 and many say it’s headed to a million or more.
If you’re looking for stability, the stock market is a much better source for that. These continue along steady trajectories for a long, long time – they just don’t offer much opportunities. Prices can surge or crash within hours with no warning in site
Then there are all kinds of altcoins that show their own paths like Monero, the Doge Coin, and countless others. Nobody wants to turn victim to a Terra-Luna crash, which lost fortunes for a lot of people. For that reason, today we’re going to be analyzing some of the telltale signs that suggest a bull run is afoot.
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Recent Crypto Bull Runs
The most recent overall crypto surge began in 2017. At that time, the Bitcoin hung around a measly $1,000 before exploding all the way to 20 grand by the end of that same year. Another rally then began when COVID hit, as online endeavors in general raked in serious profits and governments grew more friendly to digital systems to prevent the spread of the disease. Stimuli were issued and people while sitting at home had more time ot consider doing things besides in the outside world.
The Signs
No one phenomenon is a guarantee that prices are about to suddenly shoot to the moon. Signals have to be looked at in their totality along with a lot of other factors. The center of gravity in this market is the Bitcoin. Even people who aren’t interested in investing in BTC in particular keep an eye on it, since it sets the tone for altcoins and shitcoins.
This includes the Bitcoin:
- Breaking new price thresholds for the first time
- Maintaining value above a particular line for extended periods of time, indicating there’s a consistent overall rise
- Barreling through price hits
- Crypto being adopted on big entertainment platforms like 0dds96 gaming
What happens during these bullish bitcoin stretches is altcoins will initially lag behind the bitcoin and then confidence for the altcoin will build and it will start outperforming the bitcoin.. More speculative plays like in DeFi in 2020 are a hallmark of a bullish shift, like niche early action. So a small-time coin growing faster than a bitcoin is something to watch for.
High Trading Activity
Pricing going up sometimes can be deceptive. What you want to also be present is continued organic volume growth across major exchanges. Otherwise it could be manipulation rather than participation. The larger the transfers the better, especially to cold wallets, since that means they don’t plan to just turn around and sell it off but are in for the long haul.
In crypto, rising prices also happen a lot based on self-fulfilling prophecy. The more people keep mentioning it on social media, the more the media starts covering it, which recruits more and more retail buyers as a consequence. It may seem irrational but yet these still create rare, life-changing gains. This hype gets kicked up a further level thanks to FOMO.
Buzz
Just check out the total search volume for Bitcoin, ETH, or the particular altcoin you’re interested in and chart the ascension or decline in searches. Don’t be distracted by the temporary spikes. Judge the long-term progress it’s having. Also be sure to watch the number of tweets happening on X in addition to what trusted authoritative experts are saying about it. Also keep watch of the total viewership on YouTube and subreddits. Reddit has posts being published every day on almost any topic.
Just seeing a report in the media about a coin means it’s probably on its way up, especially if this is the first time. The same thing applies for big announcements in terms of:
- Major conferences
- Partnerships
- Blockchain upgrades
On-Chain Indicators
If a coin or asset doesn’t have a solid foundation, it could suddenly plummet. Since blockchain data is public for all to see, you can observe the activity taking place in the network and what investors are going.
- Are the number of active addresses growing?
- Is exchange outflow for it more than inflow? In this case, outflow is what you want, since that means people are, again, intending to hold onto it.
- HODL waves: if coins are staying unmoved, that means long term holders are stocking up on them, showing how much they believe in them.
Then there are the cross signals. When shorter-term moving averages, like th 50-day average which is frequently referenced crosses the 200-day average, this is referred to as a “golden cross”. That’s a bullish sign. When the opposite happens, it suggests more of a bearish trajectory.
- Breakouts from consolidation patterns in the form of triangles, rectangles, and wedges going up on strong volume suggest that that coin might be about to blow up.
- Relative strength index: climbing from oversold territory and maintaining the 50 to 70 range suggest bullishness
- MACD line crossing above its signal line from below zero, that often is a good sign.
Global Events
Absolutely essential of course to this entire market is governments, since they have the power to shut down trading in an instant with the passing of a single policy or kick it up a notch. Suppose a government comes out with a tax bill informing people on how crypto will be treated or decides to ease exchange licensing and ETF approvals. This makes people more comfortable. Then you have some governments that have been unfriendly toward crypto in the past, like USA, but if they suddenly lifted a ban, you’d see an explosion in investment.
Central Banks
Central banks use interest rate policy too that have a big impact on how crypto traders feel. When interest rates are low for a nation, that means that by definition there will be more jobs created and more growth will take place.
This is because there will be more lending activity, even though this leads to more inflation. On the contrary, high interest rates lead to more stagnation but a stronger national currency. Low interest rates create more of an atmosphere of risk taking. On top of that, higher inflation makes people feel like holding crypto more instead of fiat money.
Big Companies Adopting It
Then you have big financial systems that can open up the doors to crypto, just as PayPal did in 2021. A lot of behemoth companies are adopting crypto too and creating NFTs. If some of them start accepting crypto for payment, this can help facilitate a bullish run too.
When some big technological breakthrough takes place, this gets a lot of people curious too.