Do you have that one friend who seems to have an inside scoop into the crypto world? They can somehow guess when Bitcoin is going to skyrocket or when Ethereum is likely to experience a major dip. The truth is that they probably did not get “just lucky.” On the contrary, it might be the case that they happen to be paying attention to the right things at the right time.
So, how can you become like your friend? How do you spot a crypto bull run instead of hearing about it only when it is all over your social media feeds? Well, that is exactly what I will be unpacking in the article. As a crypto enthusiast, the content of this article might just be what makes the difference between you saying, “I wish I had bought in earlier,” and “I’m so glad I did.”
Let’s dive right in!
KEY TAKEAWAYS:
- A bull run is a period when the prices of cryptocurrencies are steadily rising for an extended period.
- Bitcoin halving has historically been a precursor to major bull runs.
- Other signs of an imminent bull run include increasing market interest in altcoins, bullish on-chain metrics, and the influx of new projects.
- You need to stay educated and exercise patience as a bull run approaches so you can make smart moves.
What Exactly Is A Bull Run?
A bull run or a bull market is a period when the prices of cryptocurrencies are steadily rising for an extended time. During this period, you will find that Bitcoin, Ethereum, and even other lesser-known altcoins just keep going up in value. This period often brings a lot of excitement, news coverage, and money flowing into the market.
6 Signs That Prove A Crypto Bull Run Is On The Horizon
Bull runs are opposite to bear runs, where prices are falling, and fears are rising. However, they do not happen randomly. If you are able to identify pointers that a bull run is coming, you get a better shot at riding the wave. Let us examine some of the signs of a bull market.
- Historical Patterns
Crypto is not new anymore. While it is still a young market compared to traditional finance, we have over a decade of data to study the patterns. For example, Bitcoin halving events are known to be followed by a bull run.
Past bull runs (2013, 2017, and 2020 – 2021) happened within one year of halving events. Although history does not always repeat itself exactly, it often rhymes. Therefore, recognizing where we are can help us know what to expect next.
Read Also – Understanding Market Cycles in Crypto: Bull Versus Bear Markets
- Watch How Bitcoin Moves
You can think of Bitcoin as the leader of the crypto market. Where it moves, the rest of the market typically follows. Consistent higher highs and higher lows signal an uptrend. Also, if Bitcoin breaks above a historically important price, you can expect the market to soon kick up momentum.
- Monitor The Market’s Interest In Altcoins
While Bitcoin starts the party for most bull runs, altcoins make it wild. Once Bitcoin stabilizes at a high level, traders often look for bigger gains in smaller altcoins. During this time, you can see coins like Ethereum outperform Bitcoins. There will be increased interest in DeFi, NFTs, and Web3 tokens. Additionally, low-cap coins begin to explode in price.
- Institutional Interest Picks Up
One of the most reliable early signs of a bull run is that big institutions start entering the space quietly. For instance, you will see major companies invest in Bitcoin or a country approving clearer rules for crypto assets. When institutions put their funds in crypto, it means big money is entering, and retail investors will soon follow suit.
- On-Chain Metrics Start Turning Bullish
On-chain metrics are technical data that come directly from the blockchain, and they give you insight into what is actually happening behind the scenes. Some positive metrics include increasing wallet creation and whale accumulation and decreasing exchange balances.
- Influx Of New Projects
Behind every good crypto bull run is a wave of innovation. When developers are building, funds are flowing, and exciting new projects are launching. This string of events often signals that confidence is returning to space.
Conclusion
Bull runs often build slowly, then explode fast. Your job is not to rush in. Instead, you should be patient to educate yourself and make smart moves. With the knowledge I have shared in this article, I believe you are well-prepared for the next bull run. And who knows, you might also be that friend who “just knew” that it was coming.
References
- bitpanda.com – What is a bull market?
- litefinance.org – What Is a Bull Run in Cryptocurrency
- koinly.io – Crypto Bull Market Strategies
