4 Signs of A Bullish Phase Amid Market Recovery

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As a researcher with a background in cryptocurrencies, I’ve seen my fair share of market ups and downs. The recent dip in crypto asset prices was a reminder of the volatility inherent in this space, but as we speak, there are signs that the market might be on the brink of a bullish phase.

As a crypto investor, I’ve noticed an uptick in positive numbers for crypto assets today. There’s a strong possibility that we might be entering a bullish phase after the market took a hit last week. Bitcoin (BTC), altcoins, and meme coins all saw significant declines, with Bitcoin dipping below $70k due to its own volatility and other macroeconomic factors. However, over the past 24 hours, there’s been a 0.40% increase in the total market capitalization, which now stands at approximately $2.42 trillion after a wave of massive liquidations.

As I analyze the current state of the crypto asset market, it’s clear that some investors view any rebound as merely a short-term correction, without the promise of a significant and sustained bullish phase. A short-term bull run can even lead assets back to their previous positions before another decline. However, there are distinct indicators that point towards a bullish market recovery.

Whale Activities

Crypto heavyweights and diggers have the power to influence market trends based on their substantial stockpiles. Over time, the amassing of a digital token by these “whales” triggers price fluctuations due to the message it conveys to investors. A surge in large-scale possession of assets is an indicator of a bullish trend, as the expected price rise fuels optimistic sentiments. Conversely, when whales dispose of their crypto holdings, it suggests a bearish sentiment.

Bitcoin Reclaiming Resistance

As a seasoned crypto investor, I closely monitor Bitcoin’s price action since it sets the tone for the entire market. When Bitcoin takes a dip and trades around $66,125, it can trigger a domino effect, pushing other assets down as well. However, a significant decline in Bitcoin could also pave the way for an upswing, as investors might view this as a buying opportunity.

Decentralized Finance Volumes 

As an analyst, I would say that examining the inflows into Decentralized Finance (DeFi) protocols is one indicator of a thriving market for me. In bull markets, these inflows experience a significant surge due to growing adoption and escalating asset prices. A rebound in short-term trading within the DeFi ecosystem is a promising sign, suggesting an uptrend in the market. Furthermore, bull market peaks are often associated with increased assets under management (AUM), reflecting the expanding investor base and their confidence in the market.

Outflows from Exchange

As a researcher studying cryptocurrency markets, I’ve observed that lower coins remaining on exchange books is an indicator of a bullish phase. On the other hand, when crypto users transfer their assets from exchanges to custodians for long-term holding, it signals their confidence in the market’s growth. Conversely, sending assets to centralized exchanges suggests potential selling intentions. Similarly, Bitcoin miners depositing their rewards into exchanges can also be seen as a sign of selling pressure in the market.

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2024-06-16 05:05