Markets
4 signs of a bullish phase in a context of market recovery
Crypto assets are gaining positive numbers today and could enter a bullish phase after the previous days in the woods. Bitcoin (BTC), altcoins and even coins fell last week as the market leader’s price fell below $70,000 due to other macroeconomic factors. However, in the last 24 hours, the market capitalization increased by 0.40%, taking the figures to $2.42 trillion after massive liquidations.
As crypto assets attempt to rebound, many users believe this could be a short-term correction without a major bullish phase. A short-term uptrend can also drag assets back to their previous positions before a decline. Several factors characterize a bull phase, including whale activities and a change in regulatory policies. Here are four signs of a bullish phase as the market recovers.
Activities with whales
Crypto whales and miners can rock the market due to the size of their holdings. Over the years, whales accumulating a token cause price action because of the signals it sends to users. Large-scale holders accumulating assets are a sign of a bullish phase due to anticipated price action. On the other hand, whales selling their crypto holdings are showing low sentiments.
Bitcoin recovers resistance
Market leader, Bitcoin is trading at $66,125 and is used to gauge the performance of crypto assets. Falling Bitcoin can cause prices to fall, which also implies a resurgence. This year, the BTC price hit an all-time high above $73,000, with altcoins and meme coins also seeing gains. If the asset exceeds $70,000 this week, other coins will follow.
Decentralized finance volumes
One of the controls of a healthy market is the flows towards decentralized finance (Challenge) protocols. Bull markets see rising numbers as adoption and asset prices increase. If the DeFi ecosystem rebounds in trading in the short term, it is a sign of positive market developments. Bullish spikes also lead to higher assets under management (AUM).
Exchange Exits
The decline of coins on the exchange books is a sign of a bullish phase. Crypto users sending assets from exchanges to other custodians signified long-term positions, while sending assets to centralized exchanges portends potential market selling. This also involves Bitcoin miners send 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 emerging technologies and has an eye for the latest news. Staying on top of trends, David has worked across several niches including regulation, partnerships, crypto assets, stocks, NFTs, and more. Far from the financial markets, David goes cycling and horse riding.