Markets
4 signs of a bullish phase in the context of the market recovery
Crypto assets are earning positive numbers today and may be entering a bullish phase after previous days of difficulty. Bitcoin (BTC), altcoins and meme coins tumbled last week as the market leader’s price plummeted below $70,000 due to other macroeconomic factors. However, the last 24 hours saw a 0.40% increase in market capitalization, bringing the figures to $2.42 trillion after massive liquidations.
As crypto assets attempt a rebound, many users believe this could be a short-term correction without a major bullish phase. The short-term bull run can also drag assets into earlier positions before a decline. Several factors characterize a bull phase, including whale activity and a change in regulatory policies. Here are four signs of bullishness as the market recovers.
Whale activities
Crypto whales and miners can influence the market due to the size of their holdings. Over the years, token accumulation by whales leads to price action due to the signals it sends to users. Large-scale holders accumulating assets is a sign of a bullish phase due to early price action. On the other hand, whales selling their cryptocurrency holdings show low sentiment.
Bitcoin claims resistance
Market leader, Bitcoin it trades at $66,125 and is used to evaluate the performance of crypto assets. The collapse of Bitcoin can cause prices to fall and this also implies a surge. BTC price hit an all-time high above $73,000 this year, with altcoins and meme coins posting gains. If the asset surpasses $70,000 this week, other coins will rally.
Decentralized financial volumes
One check of a healthy market is inflows into decentralized finance (DeFi) protocols. Bull markets see a surge in numbers as adoption and asset prices grow. If the DeFi ecosystem rebounds in short-term trading, it is a sign of a positive market run. Bullish spikes also lead to an increase in assets under management (AUM).
Outflows from the stock market
Falling coins on the exchange books are a sign of a bullish phase. Cryptocurrency users sending assets from exchanges to other custodians indicated long-term positions, while sending assets to centralized exchanges indicates a potential sell-off in the market. This also implies Bitcoin miners sending their rewards to exchanges.
Read also: Toncoin (TON) vs. Uniswap (UNI): Where will the bulls settle?
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.