Do not miss these common indicators of the crypto bull market

Looking back at the crazy year we've had – cryptos collapsing, interest rates soaring, and inflation going through the roof. But in 2024, the crypto market may be making a comeback. The total crypto market cap has doubled from $798.69 billion at the beginning of 2023 to $1.6 trillion as the year ends. A big part of it? Bitcoin - which climbed from $15,883 in November 2022 to over $43,000 by December 26, 2023.

Solana caught up and outperformed Bitcoin's rally. It surged by skyrocketing a whopping 1033%. The altcoin has now exceeded the $116 mark. This surge has not only elevated its position in terms of market capitalisation compared to other major cryptocurrencies but has also positioned it as a leader in the booming NFT (Non-Fungible Token) space.

The crypto scene has been a wild ride – from Bitcoin's rise to SOL's pump, and now Cardano is catching eyes. Crypto Twitter is buzzing with chatter on an impending Bull market. But before you get too excited it's crucial to do your own research (DYOR). This article will help you identify when the bull markets might really hit. When it does, be prepared with your best moves/strategies.

What is a bull market?

Whether it's crypto or equities, a bull market or a bull run denotes an extended phase where crypto prices consistently rise and make new highs.

The crypto market cap hit $3 trillion at the peak of the 2020-2021 bull run. Source: CMC

Several catalysts can spark and sustain such a bullish trend. It includes more people embracing cryptocurrencies, improvements in blockchain tech, positive changes in regulations, upbeat stories in the media about cryptocurrencies, and support from influencers, to name a few.

Spotting a bull market demands a combination of keen observation and analytical skills. Here are key signs pointing toward a bull run:

Surging Trading Activities: A marked uptick in purchase activities across crypto exchanges and platforms that facilitate cryptocurrency transfers, accompanied by rising prices, often signals a bullish phase.

24 H trading volume chart (source: CMC)

Notice that in the bull market of 2021, the 24 H trading volume rose to $300 billion and then fell to nearly $25 billion in the bear market of 2023 before picking up again. At the time of writing, the trading volume of cryptos is at a yearly peak of nearly $100 billion. (source: CMC)

Steady Price Surge: A bull market signifies more than just temporary price spikes. It denotes a sustained upward trajectory in crypto values. It lasts for an extended period - weeks, months, or even years.

SOL Price Chart

Optimistic Market Sentiments: The sentiment prevailing within the crypto community can be indicative of a bullish phase. Elevated levels of trust and positivity, reflected in metrics like the Bull/Bear ratio or the Crypto Fear and Greed Index.

If you observe now, the crypto fear and greed index is 73 - indicating Greed.

Here are a few highlights from Crypto-Twitter that capture the market mood:

Ran Neuner: https://twitter.com/cryptomanran/status/1727262559588520171

Lark Davis: https://twitter.com/TheCryptoLark/status/1737193601711681737

Ed Yardeni: https://twitter.com/CNBCClosingBell/status/1739750458720166044

Technical Insights: For enthusiasts of technical analysis, certain patterns and indicators can hint at bullish movements. Breaking through resistance thresholds, the emergence of bullish candlestick formations, or occurrences such as the "golden cross" (when a short-term moving average surpasses its longer-term counterpart) are all positive indicators.

Macro-Economic Clues: Broader economic signals can also offer insights. Robust Gross Domestic Product (GDP) expansions, declining unemployment figures, and a rise in consumer expenditures often align with the onset of bull markets.

Preparing for the Upcoming Bull Market in Crypto

Anticipating and gearing up for the next crypto bull market can pave the way for a successful journey in the crypto realm. Here's a roadmap to position yourself advantageously:

Deep Dive into Research: Delve deeply into the world of crypto. Absorb insights from journals, white papers, seminars, and industry events. Staying updated with the latest trends and news not only enriches your knowledge but also instills the confidence to navigate the market during bullish phases.

Also read: How to DYOR?

Avoid emotional trading decisions: The volatile nature of the crypto market can stir intense emotions. To navigate this, it's crucial to build emotional fortitude. Focus on maintaining perspective amid market fluctuations and remain tethered to your long-term objective

Master Risk Management: The quieter moments in a bear market enable refining your risk management blueprint. Decide on a clear allocation strategy for your crypto investments. For traders, mastering techniques like setting entry/exit points and employing stop-loss strategies can help sidestep impulsive decisions.

Embrace Asset Diversification: The principle of diversification holds in crypto. Spreading your investments across various cryptocurrencies and platforms can help buffer potential downturns. Newer altcoins may seem tempting. But you must balance your portfolio with established projects. This can offer a steadier investment landscape.

Engage with the Crypto Community: Dive deep into the expansive crypto network. Platforms such as Twitter, Telegram, Discord, Reddit, and specific forums are hubs of knowledge sharing. Active participation can yield real-time insights and collaborative learning, unveiling promising investment avenues.

Leverage Technological Aids: Ensure you have efficient and secure crypto management tools. Be it trusted wallets or accurate tracking apps. Prioritising software updates and maintaining robust security measures is crucial.

Stay Informed on Regulations: Global governments are navigating the complexities of cryptocurrency. Their regulatory decisions can sway market sentiments. Familiarising yourself with and adhering to local crypto regulations safeguards you from potential legal issues and offers a pulse on market dynamics.

Stay Dynamic and Adapt: The crypto domain is dynamic by nature. A willingness to recalibrate your strategies in response to evolving market trends, technological shifts, and project updates can be pivotal in seizing the right opportunities.

Conclusion

Navigating the volatile waters of the crypto market requires vigilance and a keen eye for emerging trends. Recognising the common indicators of a bullish phase can be the difference between capitalising on lucrative opportunities and missing out on potential gains. As we've outlined these key indicators, it's evident that being informed and proactive is paramount.

Stay ahead of the curve and leverage the insights you've gained. Ready to make your move?