4 Signs of A Bullish Phase Amid Market Recovery
Crypto assets are gaining positive numbers today and might hit a bullish phase after previous days in the woods. Bitcoin (BTC), altcoins, and meme coins plummeted last week as the price of the market leader slumped below $70k amid other macroeconomic factors. However, the last 24 hours saw a 0.40% increase in the market cap raising figures to $2.42 trillion after massive liquidations.
As crypto assets attempt a rebound, many users feel it might be a short-term correction without a major bullish phase. Short-term bull run can also drag assets to previous positions before a decline. Several factors characterize a bullish phase including the activities of whales and a shift in regulatory policies. Here are four signs of a bullish phase as the market recovers.
Whale Activities
Crypto whales and miners can swing the market due to the size of their holdings. Over the years, whales accumulating a token leads to a price action because of the signals it sends to users. Large-scale holders accumulating assets is a sign of a bullish phase because of the anticipated price action. On the other hand, whales selling their crypto holdings show low sentiments.
Bitcoin Reclaiming Resistance
Market leader, Bitcoin trades at $66,125 and is used to gauge the performance of crypto assets. Bitcoin plunging can drive prices downward and this also implies an upsurge. This year BTC price hit an all-time high above $73,000 with altcoins and meme coins also recording gains. If the asset soars above $70,000 this week, other coins will rally behind.
Decentralized Finance Volumes
One check of a healthy market is inflows to decentralized finance (DeFi) protocols. Bull markets record a spike in figures as adoption and asset prices grow. If the DeFi ecosystem rebounds in short-term trading, it’s a sign of a positive run in the market. Bull peaks also lead to higher assets under management (AUM).
Outflows from Exchange
Lower coins on exchange books are a sign of a bullish phase. Crypto users sending assets away from exchanges to other custodians signified long-term positions while sending assets to centralized exchanges points to a potential sale in the market. This also implies to Bitcoin miners sending their rewards to exchanges.
Also Read: Toncoin (TON) v Uniswap (UNI): Where Will Bulls Settle?
The post 4 Signs of A Bullish Phase Amid Market Recovery appeared first on CoinGape.
