5 Reasons the Crypto Bull Market Could Restart Anytime Soon
Several on-chain indicators suggest the crypto market has hit peak weakness, potentially setting the stage for a bull market restart soon.Summary
Despite a recent 30% drop in total crypto market cap, some analysts believe the correction resembles late-stage weakness rather than a deeper bear market, pointing to five key reasons a bull run could restart soon. First, short-term selling pressure appears exhausted, evidenced by a spike in Bitcoin moved to exchanges at a loss and the Short-Term Holder SOPR falling below 1 and stabilizing, mirroring previous bottoming patterns. Second, stablecoin buying power is building, as the Stablecoin Supply Ratio (SSR) hit a yearly low, indicating high relative liquidity ready to deploy. Third, altcoin profit resets are deep, with only about 5% of altcoin supply in profit, suggesting minimal overhead selling pressure remains. Fourth, market sentiment has reached extreme fear (Fear & Greed Index at 10), a level historically preceding significant bounces. Finally, the recent death cross, while bearish on the surface, saw a price drop similar to a previous setup that preceded a major rally, and hidden bullish divergence on the RSI suggests selling momentum is tiring. These combined factors suggest the foundation for the next crypto bull market may be forming.
(Source：BeInCrypto)