What are the signs that the currency bull market is ending? Eight Signs at the End of the Bull Market in the Currency Circle

The bull market and the bear market are like ebbs and flows in the cryptocurrency field, alternating cycles, with currency prices sometimes soaring and sometimes plummeting. The current market is in a bull market. Everyone knows that cryptocurrencies are basically on the rise during the bull market. However, the current price of Bitcoin is basically above US$70,000. Some investors will think that the bull market is over, but the rise of altcoins has shown that. The bull market is not over yet. So what are the signs that the bull market in the currency circle is over? This is a question that investors are curious about. According to the analysis of past data, the signs of the end of the bull market in the currency circle are usually accompanied by a series of market and emotional changes such as sharp declines, reduced trading volume, and changes in media sentiment. The editor will explain it in detail below. .

Eight signals at the end of the bull market in the currency circle

The end of the bull market in the currency circle is usually accompanied by a series of market and emotional changes, including sharp price drops, Decreasing trading volume, changes in media sentiment, over-investment, massive selling, etc. The following is a specific analysis:

1. Sharp price drop

Sustained sharp price drop is an important sign of the end of the bull market. Typically the prices of mainstream cryptocurrencies such as Bitcoin and Ethereum will drop sharply in a short period of time, which can trigger panic selling across the market.

2. Reduced trading volume

In a bull market, trading volume is usually high because investors are confident and actively buying. At the end of a bull market, trading volume tends to decrease significantly, indicating declining market activity and investor enthusiasm.

3. Media and Social Media Sentiment Shift

During the peak of a bull market, the media and social media are often filled with positive coverage and optimism about cryptocurrencies. Once sentiment begins to shift, negative news increases, and the tone of discussion becomes pessimistic, this may signal the end of the bull market.

4. Excessive speculation and bubbles

When there is a lot of speculation and obvious signs of bubbles in the market, the bull market may be coming to an end. For example, there are a large number of "air coins" or "junk coins" with no actual value in the market, and investors blindly pursue high returns while ignoring fundamentals.

5. Profit taking and selling by large investors

Large investors (whales) and institutional investors who entered the market early began to take profits and sell off their crypto assets in large quantities. This behavior often triggers further declines in market prices, pushing the bull market into a bear market.

6. Technical indicator signals

Some indicators in technical analysis can also help determine whether the bull market is over. For example, the relative strength index (RSI) is excessively overbought, or moving averages (such as the 50-day and 200-day moving averages) have a "death cross."

7. Macroeconomic and policy changes

Changes in the macroeconomic environment and the strengthening of policy supervision may also have a significant impact on the cryptocurrency market. For example, if the government introduces new strict regulatory policies or raises interest rates, it may undermine investor confidence and lead to the end of the bull market.

8. Market Cycles and Historical Patterns

The cryptocurrency market is cyclical and usually experiences alternating bull and bear markets. Reviewing historical data and patterns can help predict whether the current bull market is nearing its end. For example, the bull market after the Bitcoin halving usually lasts for a period of time, but will eventually usher in a correction period.

Extended reading:

The top ten signals at the end of the bull market in the currency circle

The top ten signals at the end of the bull market in the currency circle may include:

1. Volume Indicators Decline

Volume usually drops significantly at the end of a bull market, and if a stock's trading volume continues to be low, it could mean the market is beginning to show signs of weakness.

2. Moving average indicator crossover

When the stock price falls below the moving average, this is usually an important warning signal that the bull market may be coming to an end.

3. MACD indicator warning

When the fast line crosses the slow line from top to bottom, it may indicate that the stock price is about to fall.

4. RSI indicator exceeds the standard

RSI exceeding 70 indicates that the stock is overbought and the price may undergo a correction, which is more common at the end of a bull market.

5. High trading volume halved

In a bull market, a sharp increase in trading volume followed by a sharp decrease may be a signal that the market has peaked.

6. The market's intraday amplitude expands

In the late stage of the bull market, intraday fluctuations intensify and the amplitude expands, reflecting that the long-short differences have reached their peak.

7. Northbound funds change from inflow to outflow

When the bull market is coming to an end, the inflow rate of northbound funds will slow down or even turn to outflow.

8. The inflow of retail investors' funds is accelerating, and the outflow of funds from institutions and large investors is accelerating.

This indicates that the market may be coming to an end, and retail investors are taking the final orders.

9. The fund’s stock investment ratio fell sharply

The fund’s stock investment ratio fell sharply after reaching a high, which may be a signal that the bull market is over.

10. Concentrated regulatory policies

The strengthening of regulatory policies may cool down the market and is a signal that the bull market is over.

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