Over the past seven months, analysts have been wondering when the crypto market is going to revert back to a bull phase. Related Reading: Ripple CEO: These 3 Key Reasons Are Why XRP is Not a Security You see, when Bitcoin started rallying from $4,000 higher in early-2019, analysts and investors thought this was the start of a new bullish paradigm for the cryptocurrency market. But, they were sorely mistaken when BTC fell by 50% from its peak and crypto assets like Ethereum and XRP actually posted losses on the year. Per a simple tried-and-true chart depicting trends in markets, the crypto market is likely on the verge of entering its next bull phase. Here’s more on why. Crypto Market About to Enter Bull Phase Murad Mahmudov, CIO of Bitcoin fund Adaptive Capital, recently drew attention to a textbook chart that applies to any financial market — including crypto — which shows what trends in an asset’s volume, open interest, and price means for said asset’s future trajectory. The chart shows that the most optimistic scenario for any market is if the asset’s price, volume, and open interest for its futures market rise in tandem, suggesting “strength,” “bullish” price action, and an overall trend of prices rising. And what do you know! Bitcoin, over the past few weeks, has seen its price, volume, and open interest increase all at once, showing effectively no signs of weakness. This suggests the crypto market is on the verge of entering into a serious uptrend for the first time in months. Related Reading: Key Bitcoin Sell Signal Flashes: Here’s Why Analysts Aren’t Concerned Bitcoin Bull Case Builds And it isn’t only this that has crypto traders optimistic. Notably, there is a bull case for Bitcoin rapidly building. For instance, the Lucid Stop and Reversal indicator, which “signals a stop and an entry in the opposite direction” when it reverses, just printed an extremely bullish signal. The indicator shows that Bitcoin just saw its first buy signal since March 2019, with the trend as defined by the SAR turning bullish. On the fundamental side of things, Bitcoin is now four or so months out from its next block reward reduction, known as a “halving” or “halvening.” Prominent investors, including former Goldman Sachs employees, have suggested that this event will affect BTC’s supply-demand dynamics in a way that will push prices dramatically higher. With Bitcoin leading the rest of the crypto market, any strong increases in the price of BTC should lead to similar price action for altcoins. Of course, there is a growing expectation that altcoins will underperform the market leader, but a strong uptrend in BTC shouldn’t do anything but help the rest of the crypto market higher. Related Reading: Crypto Tidbits: Elon Musk Pokes Bitcoin Bear, Japanese Giants Delve Into Cryptocurrency Mining, Baidu’s Blockchain Beta Featured Image from Shutterstock The post appeared first on NewsBTC.

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