THE CRYPTO BULL RUN ENDED?
Is the bull run has ended or if the current downturn is a correction within a larger bullish trend. Here are some key factors to watch:
1. Market Trends
Higher Highs and Higher Lows: A bull run is characterized by consistent upward momentum. If major cryptocurrencies fail to reclaim previous highs, it could signal a trend reversal.
Key Support Levels: Breaking below critical support zones could indicate further downside.
2. Macro Environment
Global economic conditions, such as interest rate decisions, inflation, and geopolitical events, heavily influence market sentiment.
3. On-Chain Data
Bitcoin and Ethereum Metrics: Monitor metrics like active addresses, exchange inflows/outflows, and whale activity. Significant selling pressure could confirm bearish sentiment.
Stablecoin Reserves: A decrease in stablecoin reserves on exchanges could indicate less buying power.
4. Altcoin Performance
During the late stages of a bull market, altcoins often experience parabolic gains ("alt season"). If these gains fail to materialize or sustain, it may suggest a broader trend shift.
5. Market Sentiment
Sentiment often flips before price action. Check fear/greed indexes or social media trends to gauge the mood.
Possible Scenarios:
Bullish Case: This is a healthy correction, shaking out weak hands before resuming the uptrend. Watch for strong bounces from support levels.
Bearish Case: If key assets like Bitcoin and Ethereum lose major support levels, it could signal the start of a prolonged bearish phase.
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