Holding positions has turned from floating profits to floating losses, and every day I get asked, 'Is the bull market over?'
As an old trader who has been through two bull-bear cycles, I have to say a big truth: is there really a straight line increase in a bull market? Fluctuations and corrections are just the norm!
Those in a hurry to cut losses haven't really understood these 5 'surefire' signals. As long as they are still present, the market hasn't ended!
Signal 1: The market is about to 'release' liquidity, fresh capital is coming!
Don't be scared by the 'end of quantitative tightening'. Simply put: the market has been 'sucking out' liquidity, and starting next week, it will slowly begin to 'release' it. Liquidity is the lifeblood of the cryptocurrency world! Cryptocurrencies are super sensitive to funds, and once the money in the market increases, it will definitely flow into potential coins. The previous kind of inflated rise without funding support was truly frightening; now this wave of 'release' is definitely the 'gas station' for a bull market!
Signal 2: Regulatory measures are in place = Safe zone activated!
The regulatory measures that had everyone in the industry on edge have finally settled. You must know that 'uncertain negative news' is the most frightening; now the rules are clear, and only then can large funds that were on the sidelines dare to enter the market. Without new money coming in, how can the market go far? Now that regulatory risks are at historically low levels, this is an important foundation for the bull market to sustain!
Signal 3: Interest rate cuts are coming, and money will actively seek high returns!
At the end of October, the Federal Reserve will meet, and it's highly likely they will say 'it's time to cut interest rates.' Once the rates are cut, the returns on bank deposits and government bonds will decrease, and everyone will surely move their money to places where they can earn more. Cryptocurrency, as a high-risk, high-reward representative, is the first choice, right? Historical data shows that during rate cuts, the crypto market often outperforms other assets!
Signal 4: Gold is no longer attractive, and everyone is starting to dare to 'take risks'!
Recently, gold has dropped, which is not necessarily a bad thing! It shows that people no longer just seek 'stability,' but are starting to want to earn more, and risk appetite has returned 📈. Funds that were hiding in gold will soon flow into the crypto market and stock market. This is exactly the 'daring' sentiment that a bull market needs, and the signs of capital entering the market are already very clear!
Signal 5: Institutions are secretly bottom-fishing, don't be swayed by retail sentiment!
Don't just look at retail investors cutting losses; institutions have already quietly increased their positions! Recently, the holdings of call options for crypto assets like CRCL and COIN have suddenly surged. This is not something retail investors can achieve. Institutional money has always been a 'barometer'; they don't look at short-term fluctuations, but focus on long-term trends. Isn't it enough that these big players are voting with real money?
Lastly, here are two hard-earned lessons for beginners:
Don't blindly chase small-cap coins! Focus on core assets that are resilient and can rise, which is much more stable.
Never throw your living expenses or emergency funds into this! Set your positions and stop-losses in advance, and don't let emotions control your actions.
The meat of a bull market has always been for those who can stay calm. Most people are being harvested, not because they lack luck, but because they lack judgment of the market.
Understand these 5 signals, don't be scared by short-term fluctuations, follow the trend, and you'll be able to reap real benefits!