Vivid indicators of a bull run in the cryptocurrency market (bull market)

In the cryptocurrency space, a bull market is one in which prices are expected to increase significantly or be increasing. Due to the volatile nature of cryptocurrencies, the term ‘bull market’ is reserved for longer periods characterized by a rise in most prices. To be classified as an increase, the price must increase by 20% after two decreases of 20% each.

re is optimism, expectations for strong results, and investor confidence in a bull market, among others. most notable bull market was between 2003 and 2007. During that time, the S&P 500 rose by a substantial margin after a previous drop.

How to identify a bull run in the cryptocurrency market

It is difficult to predict when the market might change and therefore specific and universal metrics cannot be used to identify a bull market. However, there are some tips that you can use to identify a bull run in the cryptocurrency market.

Bullish Percentage Index Indicator

Investors can use the bullish percentage index (BPI) to assess the overall health of the market. BIS is calculated based on a total number of issues that generate numerical and point signals in an index or sector and is divided by the total number of shares in the group. When the BIS is above 70.0%, the main rule of the bullish percentage index is that the market is overbought, therefore bullish. When the market is oversold, the indicator is below 30.0%, which means that the market sentiment is bearish.

bullish percentage index works well over a weekly time period, so it is not efficient for day traders. However, they can identify when the market is likely to reverse. refore, they can work with and use information in addition to their trading strategy and can stay on the right side of the markets.

Average activity and statistics

For the most part, telegram groups around cryptocurrency may not have interesting posts and discussions with a lot of participation. y can usually have a few forwarded articles or links to groundbreaking news in the hopes of driving the price of a particular cryptocurrency. However, keep in mind that these groups are primarily discussion and analysis groups and not pump and dump groups.

As a bullfight approaches, there may be more activity in these groups. People could discuss pricing, adoption, major media articles, apps, and any good news with solid details to back it up. se arguments raise levels of trust everywhere. Hence, an indicator of a bull market.

This factor doesn’t apply to everyone in the crypto space. For average cryptocurrency writers, their average stats have been pretty flat since early 2018, when there was a bear market. If the stats start to rise, it is a sign that a bull run is approaching.

As the statistics increase, more retail users are seeking cryptocurrency insights, showing an increase in demand.

Correlation between BTC and Alts

When it’s a slow time for cryptocurrencies, Bitcoin and altcoin go hand in hand. However, when there is a bull run, Bitcoin tends to break free from other altcoins and start moving on its own. When there is no correlation between Bitcoin and the other cryptocurrency, Bitcoin dominates growth across the market.

So when the correlation becomes vague, one Bitcoin or the entire cryptocurrency market shutdown is close enough or has it started?

Hash tapes

Charles Edwards led to this concept. He is the founder of Capriole Investments, a licensed asset management company that specializes in Bitcoin.

bitcoin hash tape is a metric that indicates the amount of computing power in use on the Bitcoin network at that time. To authenticate Bitcoin transactions, computing power is used. Hash Ribbon assumes that Bitcoin will bottom out when miners capitulate. It means that Bitcoin is becoming expensive to mine due to the cost associated with mining.

As it grows, it shows that you need to handle more transactions every day. Consequently, this means that the trading volume is increasing. In turn, investors can get a hint from this, as it shows that the price of Bitcoin will increase. Miners receive slightly less when Bitcoin is corrected and they sell their coins for equity. Some even shut down their machines, reducing the overall network hash rate.

Hash tapes show the market sentiments; therefore, traders have a way of predicting price movement. Historically, if the price of Bitcoin increases, so do other cryptocurrencies. By tracking the Bitcoin hash tape, it can give you information about the entire cryptocurrency market.

How to take advantage of the bull market

As an investor, there are many ways you can profit from rising prices in a bull market. While it is difficult to determine when the low or the high will occur, the losses will be minimal or temporary. Here are a couple of strategies you can use:

Buy and keep

method is the most basic when it comes to investing. It means buying a cryptocurrency and then holding it to sell it later. In a bull market, the resulting optimism helps drive strategy.

Operating at full speed

method is quite aggressive in trying to capitalize on a bull market. Investors take on very active roles using short selling and other techniques to try to achieve maximum returns as changes occur in the broader bull market for cryptocurrencies.

Backspace additions

A pullback occurs in a brief moment when the general trend in the price of the cryptocurrency is reversed. Prices do not constantly increase in a bull market. re are always short periods in between where there are small declines, even if the overall market is moving higher.

As an investor, you can watch for pullbacks within a bull market and buy during these periods. Behind the strategy, assuming the bull market continues, the price will rise rapidly. In turn, the investor will buy the asset at a discounted price, so he can benefit from the increase.


2021 was quite an eventful year for cryptocurrencies in general. Profits and losses are widespread in the cryptocurrency market. With the tips listed above, you can identify and gain an advantage in a bull market and ultimately profit from it. However, that does not mean that these are the only suggestions. Researching before investing is essential to making an informed decision.

Since most of the information is online, it is easier to predict the market. re are also new tools that provide information about the market through algorithms. With these two tools and following discussions on social media, you have an edge in cryptocurrency trading.

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