Crypto Bull Run: Key Indicators & Strategies Explained

Imagine you have just invested a chunk of your investment in the crypto market in the hopes of getting more money. Then, the very day the price of the crypto you invested in starts to rise, other people realize the price of that particular crypto is rising. So, they also start investing it. Then, a chain reaction occurs, and the prices skyrocket. And this particular situation is termed the crypto bull run.

Now, tell me how much you would have gotten from this crypto bull run?

A lot, right?

But, in reality, it doesn’t happen so. It takes a lot of skills to predict whether the prices will go up or down. Plus, if you are a beginner, it can be hard to understand the market and even harder to invest. So, either you invest by depending on luck or just following the herd.

But, what if I tell you that there are indicators to tell you that the market will rise in the near future?

Yes, you read it right. There are indicators like rising prices, market sentiments, and technical indicators that you can analyze to understand the market and predict whether the market will rise or fall. A bit complex?

Worry not, this blog is about exploring those key indicators to predict the market momentum. Let’s begin.

What is Crypto Bull Run?

Crypto bull run is a market phase where you get to see a consistent rise in the overall prices of cryptocurrencies for months or even years. There can be several fundamental drivers for the crypto bull run, like strong investor confidence, high demand for digital assets, and positive market sentiment.

During this phase, you can see the prices of major cryptocurrencies like Bitcoin and Ethereum doubling or even tripling in just a few months. Further, you can also get to see a rise in the prices of altcoins, where even the lesser-known tokens experience a significant price increase and follow an upward trajectory.

Here is the list of crypto bull runs in the past:

2017 Crypto Bull Run

Price Increase and Rate

From $1,000 in January to $20,000 in December with an increase rate of 1,900%.

Fundamental Drivers

1. ICO Boom and media hype.
2. Easy access through user-friendly exchanges.

2020-2021 Crypto Bull Run

Price Increase and Rate

From $8,000 in January 2020 to $64,000 in April 2021 with an increase rate of 700%.

Fundamental Drivers

1. Big companies like Tesla invested in crypto.

2. Rise of Bitcoin as “digital gold” and a hedge against inflation

3. 2024-2025 Crypto Bull Run

Price Increase and Rate

From $40,000 in January 2024 to $93,000 in November 2024 with an increase rate of 132%.

Fundamental Drivers

1. Spot Bitcoin ETF approval in the U.S.
2. Bitcoin halving in April 2024.
3. Optimism around pro-crypto policies.

Why do Crypto Bull Runs Happen?

Before heading to the key indicators of a crypto bull run, let’s discuss why these market phases occur. In simple terms, you will be exploring the fundamental drivers of the market that can cause crypto bull runs.

Bitcoin Halving Events

Bitcoin halving occurs about every four years, which reduces the reward of the mining process by half. As a result, the supply of Bitcoin to the market decreases, and automatically, it increases the demand for the crypto and increases the prices, which is often termed as a Bitcoin surge. Plus, it is evident from the previous halving events that caused major crypto bull runs in the past.

Mass Adoption and Institutional Investment

When a major company, financial institutions, or even the government sometimes, starts to show interest in cryptocurrency, it can significantly boost the credibility and demand for the crypto. And with the increase in demand, the prices of crypto increase. For instance, one of the major reasons for the 2020-2021 bull run was that companies like Tesla and Square were investing in Bitcoin.

Favorable Regulatory Environment

The crypto market is volatile, and it needs a lot of regulatory changes to make it stable. So, whenever there is a situation of a favorable regulatory environment, like legal recognition of crypto assets and approval of ETFs, it can drive investors to invest in cryptocurrencies. As a result, this can lead to the crypto bull run.

Technological Advancements

Bitcoin was first introduced in 2009, and since then, there have been many technological advancements and trends in this blockchain industry to make it accessible, like smart contracts, decentralized finance, ETFs, and so on. These kinds of advancements result in blockchain growth and the attraction of new investors in the market. Plus, the advancement also creates a positive market sentiment, leading to the crypto bull run.

Key Indicators of a Crypto Bull Run

Finally, you are here, the list of key market indicators of the crypto bull run. So, without any further ado, let’s discuss the major signs that help you predict the upcoming bullish trend.

Rising Prices and Trading Volumes

One of the most obvious and simple indicators of a crypto bull is the consistent rise in the prices of cryptocurrencies, especially the major ones like Bitcoin and Ethereum. These increases in the prices are not just sudden spikes but can be seen for multiple days or even weeks, showing the positive sentiment and growing confidence among the investors.

Along with the rising prices, you also need to look for a rise in the trading volumes. In simple terms, a rise in trading volumes shows that a high number of people are buying and selling the crypto, showing that more people are interested.

As a combination of a rise in prices and trading volume, it can be a strong indicator that strong investors are participating in the market and the near-term crypto bull run.

Market Centiment

Market or Investor sentiment is another major indicator of the crypto bull run. It is all about what investors think about the market. So, it is either positive, neutral, or negative based on different influential factors in the market.

One of the useful tools to analyze the market sentiment is the fear and greed index. This shows whether the investors are feeling positive or negative towards the market.

During or just before the crypto bull run, you can see the positive sentiment all over the market. You can also find confident investors ready to invest in the market. As a result, more people get interested in the market with a fear of missing out, increasing the overall demand. Further, people start to discuss the market, and news also starts to circulate through different media, which ultimately amplifies the positive sentiment of the market.

As the positive sentiment increases, it leads to even more buying activity in the market. This creates a feedback loop where the more optimistic people are, the more likely they are to invest, which pushes prices higher and leads to the crypto bull run.

Technical Indicators

Technical indicators are major and the most accurate indicators that help you analyze the market condition and predict the future crypto bull run. Here is the list of top technical indicators that are used by professional investors:

Golden Cross

A golden cross occurs when the short-term moving average, which is approximately 50 days, crosses above the long-term moving average that is approximately 200 days. This indicates the start of a strong upward trend, signaling a potential crypto bull run.

Relative Strength Index (RSI)

The RSI is an indicator that measures how strongly the prices are changing. When the RSI signals are between 50 and 70, it shows there is healthy buying momentum in the market. Similarly, if it goes above 70, it means the market is overbought, and a price can drop in the near future.

Breakouts Above Resistance Levels

When the price of the cryptocurrency breaks above a key resistance level, a price point where it struggled to go higher before, it indicates that the market is trying to rise and the crypto bull run can occur.

Moving Average Convergence Divergence (MACD)

The MACD helps show whether a cryptocurrency is in a bullish or bearish trend. A bullish signal occurs when the MACD line crosses above the signal line, which normally indicates a strong upward trend. These breakout patterns are one of the first technical signs of a crypto bull run.

Volume-Weighted Indicators

Volume-weighted indicators are the indicators that track trading volumes. When the price rises with higher trading volumes, it indicates that the bull run is strong and the market sentiment is positive. As a result, it can lead the market to a crypto bull run.

Strategies on How to Benefit from a Crypto Bull Run

You just learned the major indicator of a crypto bull run, but still unaware of how to benefit from this market phase. So, to help you get the most from it, I have a list of proven strategies. Here it goes:

Buy and Hold

One of the key strategies to benefit from a crypto investment is investing and holding it for a long time. The main reason for this strategy is that the market will increase eventually, even if there is a bullish and bearish trend. So, once you buy the hold crypto for a long time, you are destined to benefit from the market.

Take Advantage of Dollar-Cost Averaging (DCA)

Dollar-cost averaging is also one of the best strategies that professionals use to make the most from their investment. In simple terms, it is the process of investing in crypto at a regular interval of time, no matter the price of crypto. As a result, this strategy allows you to build your portfolio with time without much effect of the bearish trend. Plus, it minimizes the risk associated with the price fluctuations during the crypto bull run.

Swing Trading

Swing trading is a major strategy for the crypto bull run, which is about making profits from short-term price fluctuations. During a bull run, you can take advantage of the price fluctuations within the uptrend by buying while the prices are going down and selling when prices rise again. In particular, the main goal is to capitalize on both the upward and downward swings.

Set Stop-Loss and Take-Profit Orders

Setting stop-loss and take-profit orders is another great strategy to help you protect your investments. In simple terms, a stop-loss order automatically sells your crypto when its price drops to a certain level, limiting your losses. Likewise, take-profit orders lock in your gains when prices hit a target, ensuring you don’t miss out on profits if the bull run peaks.

Diversify Your Portfolio

Diversifying your portfolio is the last but not the least strategy that suggests you invest in multiple cryptos rather than depending on one. In simple words, don’t put all your eggs in one basket. So, instead of investing only in Bitcoin or Ethereum, you need to diversify your portfolio with other cryptocurrencies like altcoins.

During the bull run, altcoins also experience significant price growth, so diversifying your investments can increase your chances of profit.

Conclusion

Finally, we are at the end of this blog, and you must be confident about what a crypto bull run is and about its key indicators. But, before concluding the blog, let me remind you of what you learned from this blog.

You started with what a crypto bull run is and what its fundamental drivers are. Then, you explored the major signs that help you to predict the bull run, like rising prices and trading volumes, positive market sentiment, and accurate technical indicators, like breakout patterns, bullish divergence, and MACD.

And more importantly, you learned how to analyze crypto trends and make the most out of a bull run using proven strategies like buy-and-hold, dollar-cost averaging, swing trading, setting stop-loss orders, and diversifying your crypto investments.

Now, with the immense knowledge of the crypto bull run, the next time you hear people talk about the potential bull run, you will clearly analyze the indicators and avoid following the herd.