In the cryptocurrency world, countless people are eagerly awaiting the arrival of the bull market. However, when the bull market will come is always full of uncertainty. There was a time when the price of the coin reached 73,800, and many people predicted that the price of the coin would reach 100,000 in the second half of the year, but now those voices have gradually faded. Strangely enough, those who shout that the bull market is coming and those who shout that the bear market is coming are often the same group of people.
So, what are the common characteristics of a bull market in the cryptocurrency world?
First of all, when both the big cake and the concubine surpassed the historical highs of the previous bull market, this was undoubtedly an important sign of the start of the bull market. This means that the enthusiasm of the market has been thoroughly ignited and investors are full of confidence.
From the index point of view, if the index is above 10, the index is lower than 0.2, and Jiang Zhuoer's 60-day consecutive increase index is higher than 80%, it can be basically determined to be in a bull top state. At this time, investors need to be extra cautious because the market may turn at any time.
The performance of the moving average can also reveal signs of a bull market. When the daily K-line price of the big cake and the concubine deviates from the 60-day moving average by more than 30%, and the 60-day moving average continues to rise, it means that people who entered the market at different time periods have achieved profits. This will further attract more investors to enter the market.
When the 30-day, 60-day, 120-day, and 200-day moving averages disperse, it means that the chips are not concentrated and are beginning to be distributed. When everyone is making money, there are often hidden dangers.
The activities of exchanges are also an important observation point. In the bull market, the activities of exchanges emerge in an endless stream, and there are basically 1-2 activities per month. Each project party will also take advantage of the hot market to launch projects and strive to sell them at a good price.
The circle of friends is full of people showing off their earnings, and the group chats are full of myths about getting rich quickly. When you make some money yourself and are excited to get rich like them, you are probably already in the heat of the bull market.
The fact that the market share of Bitcoin has dropped to around 30% is also a dangerous signal, because at this time, the market value of altcoins has risen to hundreds of billions, and the market may have been overheated.
High trading volume is also one of the characteristics of a bull market. The trading volume can reach hundreds of billions of dollars a day, showing that the market is extremely active.
The Yitai Foundation began to sell coins frequently, and their wallet assets began to be transferred to exchanges for sale, which may also mean that the bull market is coming to an end.
Finally, there is a constant stream of good news in the market, one after another, there are endless stories to tell, and each story is different.
The bull market in the cryptocurrency world generally lasts from 6 months to 2 years. For example, from the end of 2016 to the beginning of 2017, the price of Bitcoin rose from less than $1,000 to nearly $20,000, and the bull market lasted for more than a year. In early 2019, the price of Bitcoin gradually rose from $3,000 to a high of $14,000 in June, and the bull market lasted for nearly 6 months.
