5 Signs the Bitcoin Bull Phase is Back
And how to take advantage
You will recall that in the last few days, I have given you the heads up that we are entering the bull phase of the crypto cycle again. And this comes with many advantages and disadvantages. Bitcoin has shown a great uptick today and this might be the beginning of real positive momentum upwards.
If you don’t understand the 4 phases of the crypto cycle, I highly recommend you to pick up a copy of my crypto book on Amazon. It will show you a lot about what to expect in this new bull phase.
Now, here are 5 signs that the bull phase is here:
1. The Worst has Happened and Bitcoin has been Flat Since
This is the first sign of the bull phase. The FTX saga is clearly the bottom of the last crypto cycle. That has happened and the price action has been mostly flat since then. We have had the pain phase and the pain really went as deep as it should have.
On that note, the low was commensurate with the 65k high of the last cycle. There is no longer any bad news for crypto. But there are lots of bad news on other assets though. The growing US debt is a major concern.
2. Gradual Optimism on the Horizon
Optimism is gradually ticking up. It is easier for people to believe again. The heavy wounds from the pain phase have dried up for most people. The speculators are no longer talking about bitcoin. They are too ashamed to come out with a bullish case.
There is a genuine quietness from the crypto noisemakers. Most of those talking now understand what they are saying. The bulls have stopped getting painful pushback. People have moved on into other things.
This is a very important sign for every new bitcoin bull phase. People who suffered a great deal in the last crypto cycle have cut their losses and moved into something else.
3. Crisis is on the Horizon
There are two wars going on right now in the world and a potential for a third. There is a growing worry about the growing US debt. There is the inflation crisis.
All of these lightly signal a bullish case for bitcoin. Investors are not buying bonds and we are seeing very high bond yields. Bitcoin might just be the alternative investment that wealthy investors run to for safety from inflation.
So, it is not that bitcoin is growing in value, but the dollar is actually getting devalued. This is a sound argument going forward, but always remember that the financial market doesn’t follow sound arguments.
The gradual devaluation of the USD by the large US deficit (and debt) is propelling the bullish case for bitcoin.
4. Increased Big Business Transactions in Crypto
Due to the current crisis and uncertainty in the world at this time, many are preferring to use bitcoin to carry out international business transactions. I mean, people who would not use it normally. Rumors of sanctions are already flying around.
There are some business people I’m familiar with who are seriously considering using bitcoin in their transactions now. This is what might be the big value-add of this new phase. And yes, that will come with its wild swings.
5. Good News on the Horizon
By this, I mean the BlackRock ETF. The pending approval is getting people excited about the prospects of a price surge. Now, the thing is not the approval itself. It is not that the ETF will make BlackRock buy bitcoin.
In fact, my guess is that BlackRock has been quietly accumulating bitcoin on the cheap through the pain phases. But it is the good news. It is the good news that such a thing gets approved that will drive up the bulls.
Now, I do not recommend trading on the news. If you read my crypto book, you will learn that every time I decided to trade the news in crypto, I lost money. Even people I know who are good at trading do lose money when trading on (good) news in crypto.
So, always use a strategy. If you don’t have a strategy, it doesn’t matter how good things get, you will lose money.
Bitcoin bull phase is back. And it is going to gradually build up over several months (and possibly years) into another all-time high. But never forget that this is cyclical. The crash phase will follow again. And there will be another pain phase.
So, if you don’t have a strategy, you will still lose money (in the long term). Be smart and invest wisely.