🚨 Here are some of the top signals observed in past cycles 🚨
1. Bitcoin Dominance:
- Decrease in Bitcoin Dominance: This often signals that investors are moving funds into altcoins, potentially indicating the start or middle of a bull market. When Bitcoin's market dominance decreases, it suggests that money is flowing into other cryptocurrencies, which is usually seen as a sign of market expansion and speculative interest.
2. Market Sentiment and Social Media Activity:
- High Social Media Engagement: Peaks in interest on platforms like X (formerly Twitter), Reddit, and others, especially with hashtags like #Bitcoin or #Crypto, can indicate approaching market tops. Extreme levels of FOMO (Fear Of Missing Out) and widespread discussion in mainstream media often precede market peaks.
3. Trading Volume:
- Surges in Trading Volume: High trading volumes, especially on major exchanges, often accompany market tops and bottoms. A significant increase in volume, particularly with rising prices, can be a precursor to a market top where the 'smart money' might start selling into the hype.
4. MACD (Moving Average Convergence Divergence) Indicators:
- MACD Crosses: The MACD, when it crosses above or below the signal line, has been a notable indicator. A bullish cross above zero has often signaled the beginning of a bull run, while bearish crosses below zero can indicate potential downturns.
5. Bollinger Bands:
- Bollinger Band Squeeze and Expansion: The expansion of Bollinger Bands after periods of low volatility (squeeze) can signal the beginning of significant price moves. A squeeze followed by an expansion has often been observed at cycle turning points.
6. Ripple Effect from Bitcoin:
- Bitcoin's Price Action: Often, Bitcoin leads the market. When Bitcoin hits new all-time highs or experiences significant parabolic rises, it tends to pull altcoins along, but this can also signal that the market might be nearing its peak as the cycle matures.