Markets
4 signs of a bullish phase amid market recovery
Crypto assets are gaining positive numbers today and could reach a bullish phase after the previous days in the woods. Bitcoin (BTC), altcoins and meme coins plunged last week as the market leader’s price fell below $70,000 amid other macroeconomic factors. However, the last 24 hours have seen a 0.40% increase in market capitalization, bringing the figure to $2.42 billion following massive liquidations.
As crypto assets attempt a recovery, many users feel it could be a short-term correction without a major bullish phase. The short-term rally can also drag assets back to 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.
Whale Activities
Crypto whales and miners can move the market due to the size of their holdings. Over the years, the accumulation of tokens by whales leads to price action because of the signals it sends to users. Asset accumulation by large holders is a sign of a bullish phase due to anticipated price action. On the other hand, whales selling their cryptocurrencies show low sentiments.
Bitcoin Regaining Resistance
Market leader, Bitcoin it trades at $66,125 and is used to evaluate the performance of crypto assets. The fall of Bitcoin can cause prices to fall and this also implies an increase. This year, the price of BTC reached an all-time high above $73,000, with altcoins and meme coins also recording gains. If the asset rises above $70,000 this week, other coins will rise.
Decentralized Finance Volumes
One check of a healthy market is flows into decentralized finance (DeFi) protocols. Bull markets see an increase in numbers as adoption and asset prices increase. If the DeFi ecosystem recovers in short-term trading, it is a sign of a positive run in the market. Bullish spikes also lead to higher assets under management (AUM).
Exchange Outputs
Lower currencies in exchange portfolios are 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 pointed to a potential market sell-off. This also implies Bitcoin Miners sending your rewards to exchanges.
Read too: Toncoin (TON) vs Uniswap (UNI): Where will 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 keeps an eye on the latest news. Keeping up to date with trends, David has reported on various niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from financial markets, David rides his bike and horses.