How To Prepare For The Next Crypto Bull Run
When the last bull run happened in 2021, Bitcoin reached its all-time high of $68k. The pump and the positive sentiment it received funneled into other crypto assets, resulting in Ethereum reaching $4.8k, Cardano reaching $2.9, Litecoin going $345, and many tokens touching their all-time high levels.
These highs marked a 2000% increase in Bitcoin and a 7000% and 17,000% pump for Ethereum and Cardano, respectively. Similar levels of increases were seen in Litecoin, Dogecoin, Solana, and a large number of other crypto assets. Those who could catch on to the bull run made tremendous gains. And when the correction from 2022’s bear cycle marked the end of the bull run, anticipation for the next bull run began.
This guide provides a comprehensive insight into the next crypto bull run. We discuss the factors that will impact the next bull run, general trends that usually impact these runs, and how you can prepare for it to get the most benefit. We will also highlight the pitfalls you must avoid to prevent bearish losses even during a bull cycle.
What Is A Crypto Bull Run?
In the investment sector, a bull run is when most investors buy. Demand is more than supply during this period, and people’s positive sentiment for assets is high.
On the price charts, a token’s value goes upwards constantly – indicating that people are bullish about their investment.
Therefore, investors who believe that the price will increase, take hold of the market, causing the market to create positive feedback, which motivates others to invest – creating buying pressure. And when investment grows, so does an asset’s price.
What Are The Key Indicators Of The Bull Market?
Different factors influence each bull market, but these are common for most bull runs:
Price growth Is Significant
Price growth is the major indicator of a bull run. During a bull cycle, an asset’s price growth is sustained over a long time. Its candle chart shows repeated green patterns daily and weekly. The token persists in the overbought zone (RSI above 70), but there are no rapid sell-offs.
Bitcoin’s last bull run saw growth in multiple green candles, followed by minor reds, followed by large greens again, which pushed the market higher. For more details, check out our guide on Bitcoin Price.
High Investor Confidence
During a bull cycle, investors feel good about their investments. They become bullish, even going as far as to post to social media to show their market appreciation. In the price charts, several consecutive large green candles reflect that sentiment.
Even low-cap crypto assets, often considered riskier investments, show tremendous price growth. In short, an ecosystem of FOMO is created for crypto assets.
Read our guide to discover the best under $1 coins to buy now.
Lowering Employment Rate
Bull markets create an ecosystem of profit for corporate organizations. And as people have more money to spend, these entities yield more profit. That opens these organizations to bolster the number of their employees – and you see that in the decreasing unemployment rate.
Positive Economic Indicators
Another major factor is a good economy. When the economy is good, things are affordable, which pushes the bull market. You can see on the price charts sometimes that bull markets coincide with positive economic indicators.
Sometimes, signs of lowering recession coincide with bull cycles. While rare, these things do happen.
Factors That Will Influence The Upcoming Bull Cycle
The upcoming bull cycle will be different than the last. Technologies have evolved, and so do people’s demands. In light of that, the following factors will influence the upcoming bear cycle.
Metaverse is getting more interactive because Web 3.0 is getting prominent due to rising awareness towards decentralization. As major companies are stepping into the metaverse, virtual environments are slowly becoming mainstream. These environments emphasize ease of access and ease of search.
People are moving away from typing and adopting voice-based searches. Visionary businesses are more than up for adapting to this requirement and implementing interactive communication modes. Metaverse is also getting bigger as different virtual worlds are now looking for ways to be interconnected.
For instance, BAYC’s Otherside aims to bring many NFTs to one virtual world. That has caused the development of cross-chain communication to become more prevalent. Backed by the resultant interoperability, the metaverse is becoming more versatile. For more details, check out our guide on the best metaverse coins to buy now. They could go big in the upcoming crypto bull cycle.
The AI industry is booming. Currently worth 100 billion USD, the AI industry is receiving rising interest bolstered by the likes of ChatGPT. According to Statista, the market will reach 2 trillion dollars by 2030.
Furthermore, AI’s deep learning is creeping into blockchain technology. That convergence can potentially create new use cases in many industries. AI cryptos are already making routes, with tokens like Fetch.ai implementing AI tech to create a decentralized machine learning network. Another project, called The Graph, aims to provide a decentralized search engine to users.
As multiple AI-driven use cases arrive, their decentralization using blockchain will likely bolster the upcoming bull cycle.
Check out our guide to discover the best AI coins to buy now.
Decentralized finance is slowly being adopted, thanks to the fall of centralized banks like Signature and Silicon Valley Bank. It has led traditional financial products to enter DeFi.
According to the reports, DeFi will likely grow at the rate of 42.6% for the next 7 years. And with innovations like cross-chain interoperability, DeFi will scale up to increase adoption.
Check out our list of the best DeFi cryptos to buy.
2021’s bull cycle and NFT boom pushed gaming to the forefront. However, Web3 games have yet to appease long-time gamers as these gamers dub NFTs in games as “commodification of gameplay”. Furthermore, web3 games have so far been minimalistic, an issue created by solely relying on the Ethereum blockchain.
However, things are shifting in a positive direction. Binance Smart Chain now leads as the chain of choice, covering over 38.11% of new games being created in this niche. This chain will introduce flexibility, which is necessary for better games.
On a more traditional tech front, Google has opened its doors to NFT in its app store. Other developments show that gaming companies like Ubisoft are contemplating implementing NFTs into their games. Although challenging, innovation can make it possible.
Read our guide to discover some of the best web3 crypto projects.
The final driver of the upcoming bull run for crypto will be the regulatory developments. 2023 has seen many major developments in the crypto sector. Countries are developing crypto laws to regulate the market on one end, and the SEC is being forced to define clear rules around crypto on the other.
Many countries are being asked to embrace innovation from the blockchain sector. Some have even developed CBDCs as national digital assets.
These regulatory factors, whether progressive or regressive, will decide how the bull cycle performs when it comes.
When Is The Next Bull Run Coming
This topic about when the next bull run is coming is full of speculation. It is challenging to predict since market interest changes. However, a crypto bull run generally coincides with Bitcoin Halving.
Bitcoin halving for a four-year event reduces the block rewards by half. With the upcoming halving expected in 2024, when the number of block hits will be 740k, the block rewards will go from 6.25 to 3.125 Bitcoins. Read our guide to discover the exact time that the next Bitcoin halving will unfold.
As only 21 million Bitcoin tokens exist, Bitcoin halving will promote scarcity for BTC by reducing the rewards. Historically, it has caused the Bitcoin price to go through a bull run. Recently, Changpeng Zhao has predicted that the next bull cycle will happen a year after the halving.
How To Prepare For The Next Bull Cycle?
Here are five major tips to prepare for the next cycle:
React Not Predict
Every cycle is different. People often use historical data to predict the cycle, but they don’t realize that while helpful, that information doesn’t always show the full picture. The crypto market is extremely volatile, with strong supporters, which brings strong opinions. That dogmatic approach doesn’t allow many “influencers” to be open in their predictions.
But you must keep yourself flexible. Don’t follow a rigid lane. React to the market changes aggressively and with discipline to make the most out of it.
Also, check out our list of the most volatile crypto assets.
Sell Extra Assets To Raise Cash Levels
Make sure that you have plenty of buying power, as it will help you stay afloat when the market shifts. You can do this by selling the extra assets you have – which is crucial. Not every asset may gain from the bull market.
Therefore, do not get too emotionally attached to them; do not wait for them to go higher. Get done with the ones that lack potential quickly. It will maintain your capital and increase your cash pool, giving you a reason to celebrate even during the bear market.
Participate In Crypto Presale
The bear market brought many crypto presales. These assets, particularly Bitcoin ETF Token and Bitcoin Minetrix have utilities, present huge upsides, and will surely pump when listed on exchanges.
While retraces happen, their adherence to the roadmap can put them back on track. Such tokens become sustainable as a long-term asset as they gain more traction in the market, becoming subject to the next bull cycle.
Bitcoin ETF Token and Bitcoin Minetrix are utility cryptos Provided that they can stay true to their long-term goals post-presale, they will grow exponentially. Investors have confidence in the potential of Bitcoin ETF Token to become the next cryptocurrency to fly to the moon. Its ongoing presale has recorded over $510k as of press time. Well-known crypto analyst, Jacob Bury believes the token can yield 10x returns to early investors.
We recommend that you read our guide to find other cryptos with most potential.
Active Traders Must Focus On Short-Term Trades
Bear markets have the best short-term trading opportunities. For example, Pepe Coin went up by 83,000% within 10 days of being listed, crafting a mania for memecoins.
Such surges are sudden and surprising, and they can last for a while and give off a “bear market is over” vibe. So, while waiting for the bull cycle, focus on short-term trades and look for the best cryptos to buy during a crash.
Research And Select Tokens
A bear market is the time to hold the tokens and research new investments. Start studying the crypto assets available in the market, and find the ones with the most potential.
Remember to analyze the price charts; also focus on an asset’s underlying technology and adoption rate. AI-for instance, is growing, so any AI-driven crypto will likely receive the community’s attention during the bull market. The same can be the case with DeFi tokens. List these assets, track them, and when they hit early bottoms in the bear market, buy them in preparation for the bull season.
If you are a newbie, we advise that you read our guide on how to buy cryptocurrency safely this year.
Mistakes To Avoid During Bull Runs
Overexcitement and lack of patience can make your conditions bearish even if the market is bullish. Avoid the following mistakes during bull runs.
A bull market is not perpetual; it has an ending. So, staying cautious is crucial. Choose opportunities sparingly. If you witness an asset’s price going up too high into the overbought zone, know that it is overvalued and primed for correction. Some retail investors ignore it, and they hold the bag during peaks during the bull season. So, don’t be too bullish on an asset out of greed. Focus on research first.
Switching Your Investment Process Drastically
Bull markets often give a false sense of security. With long greens enticing novice traders, they change their risk portfolio drastically – even if they have been risk averse in the past.
They drop their tested strategies to pick an asset that is being overhyped by the media. While there is nothing wrong with listening to influencers, not everyone is cut from the same cloth; getting swayed by the wrong influence can cause losses. Nonetheless, for credible trading insights, you can follow some of our recommended crypto YouTube channels.
Using The Wrong Exchange
New exchanges are cropping up. Some charge high fees, saying that their services are new. Don’t get enticed by them too easily. Higher fees mean lower profit margins for you. Therefore, pick an exchange that offers a low-fee model without skimping on versatile trading opportunities – like OKX, Binance, Bybit, and eToro amongst others.
Read our eToro vs Binance guide to discover which is best for your trading goals.
Relying Solely On Crypto Trading Charts
Reading the indicators is helpful as they give you a glance at the trends. But you need more than technical trends to follow a crypto asset’s price movement. Sometimes, multiple red candles are followed by bigger green ones without reason. The recent memecoin mania is the evidence. Relying on only them is therefore not a good idea.
To gain the most from the market, always look for social indicators as well.
Keep up with the news and social media posts, for they can give you a glance at an asset’s performance based on its developments. You can also follow some of the best crypto Twitter accounts in this guide.
How To Find The End Of Bull Runs?
Bull runs can be long and can last from several months to sometimes years, but they don’t last forever. Investing at the wrong time will leave you holding the bag at peaks. That makes finding the end of a bull run important. However, it is tricky.
Bull runs are never linear; price fluctuations are still common; a small red after multiple consecutive large green candles can be mistaken for the end of the bull run.
Therefore, the best way to find a bull run is to study the past charts. You will find that a sharp decline in prices generally marks the end of a bull run. The charts show a few small consecutive red candles before a massive drop.
The drop marks that the sell-pressure has begun. Starting with a few reds, a ripple effect is created, bringing the bear market.
Many say the next crypto bull run will come a year or less after halving. But how long it lasts and how big it becomes will be determined by technological and regulatory developments.
It is high time that you prepare for it. Remember, patience is key. Investing at the wrong time can bring about massive losses. Stay cautious with your investments. Invest in utility-based tokens.
Using a multi-pronged analysis approach, follow the price charts and social media to assess how a token performs. And most importantly, stay informed. Do these things, and the next bull run could prove profitable. Also, endeavor to invest in utility-based tokens like Bitcoin ETF Token.
Which crypto can I buy during a bull run?
The choice of crypto to buy during bull run changes depending on the asset’s current development and prospects. Research and list down potential cryptocurrencies that could go up. Look at the past trading charts and ascertain whether new cryptos would embrace upcoming technologies. These tips will help you pick the next crypto for a bull run.
How do you know if crypto is bullish?
If you see a token’s price quickly trending upwards, it indicates it has more buyers than sellers. It could mean investors are optimistic that the asset could go up further.
How long do bull runs last?
Market conditions dictate how long the bull runs can last. Some crypto assets have gone on 180-200 days of bull runs, and few have lasted only a month. People’s perception and the market fundamentals of the token dictate how long a bull run can last.