Indicators to Watch for in the Next Crypto Bull Market Peak
Summary:
Crypto analysts outline potential indicators for the next crypto bull market peak. These include celebrities endorsing NFTs, lavish crypto ads, and mainstream brands adopting crypto lingo. Bitcoin has seen a 74% surge in the past 90 days, a trend expected to continue through 2024. Analysts suggest that extravagant displays of wealth, high-profile crypto endorsements, and big names in business embracing crypto could signal a nearing market peak. Technical analysis also plays a large role in estimating the market high, using tracking tools like the Relative Strength Index (RSI) and monitoring the volume and supply of stablecoins.
In the world of cryptocurrency, there may be signs to watch for during the next bull market that could suggest a peak. These signals include celebrities endorsing nonfungible tokens (NFTs), large-scale crypto advertisements, and mainstream brands embracing crypto terminology. The crypto sector is predicted to witness a significant upsurge in 2024. Bitcoin's value soared by 74% in the past three months, with some forecasting its highest peak to occur towards the end of 2024.
Ben Simpson, the founder of the crypto education platform Collective Shift, shared his indicators. He said when seemingly everyone is making money, and people he usually wouldn't expect are discussing crypto and their gains from it, it might be an indication of the market nearing its top. Brash displays of wealth like luxury cars and properties could be symptomatic of an overheated market.
Another pointer he observed was when crypto exchanges like FTX and Crypto.com had excess funds to spend on expensive promotional campaigns. This included securing naming rights for sports stadiums and airing ads in high-profile events like the Super Bowl.
Crypto-related music, such as the 2022 hit song by Randi Zuckerberg, Meta CEO Mark Zuckerberg's sister, was a giveaway that they might be in a bubble, Simpson commented.
On the other hand, Molly White, a software engineer and critic of crypto, cited celebrity endorsement of crypto and NFT projects as a key signal. She referred to stars who promoted NFTs, like Kim Kardashian's promotion of EthereumMAX and Justin Bieber's purchase of a Bored Ape Yacht Club NFT, both big red flags. High-profile endorsements, such as those from Paris Hilton and Jimmy Fallon, were also warning signs for White.
She also noted mainstream brands like Adidas and Coca-Cola embedding themselves in the crypto movement, and big names like Budweiser and Pepsi adopting crypto slang on social media, as indicators of a market peak.
Simpson observed that deceptive sentiment signs are the final pieces in the market puzzle, particularly watching crypto held by exchanges and stablecoins' volume and supply.
IG Australia analyst Tony Sycamore, however, relies heavily on technical analysis, using tools like the Relative Strength Index (RSI) to measure momentum and predict potential market direction.
Simpson concluded that once the cycle ends, it ends abruptly, and it is wise to start cashing in earlier. As more evidence of the impact of crypto comes forward, recent studies show a growth in substance abuse among crypto traders.
Published At
12/11/2023 4:54:52 AM
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