Before a bull market arrives, there are usually some signs that may indicate the market is about to enter an upward trend. Here are the five major signs before a bull market arrives:
1. Trading volume gradually rebounds: Before a bull market arrives, the trading volume in the market usually gradually increases. This is because investors begin to have confidence in the market and are willing to increase their trading volume. The increase in trading volume provides momentum for the market's rise.
2. Clarity and support from policies: The clarity and support from policies, as well as the degree of policy alignment with market conditions, are two key factors for the success of a bull market. If there are significant positive policy developments, such as interest rate cuts or tax reductions, this will help boost market confidence and drive the stock market higher.
3. Market sentiment gradually recovers: Before a bull market arrives, market sentiment usually gradually recovers. Investors begin to recover from previous panic emotions and are willing to re-enter the market. The recovery of market sentiment helps to drive the stock market higher.
4. Technical patterns show a positive trend: On the eve of an impending bull market, the technical patterns of candlesticks may show a positive trend. For example, stock indices may break through important technical resistance levels or form clear bottoming patterns. These technical signals may indicate that the market is about to enter an upward trend.
5. Major cryptocurrencies perform actively: In the phase before a bull market arrives, major cryptocurrencies may show active market performance, which can also drive the rise of altcoins and other mainstream coins.
It is important to note that the above signs are not absolute; market trends are influenced by various factors. Investors should consider various factors comprehensively and make careful judgments when making investment decisions. Also, investing involves risks, and one should be cautious when entering the market.
