- Also Read: What is Bear Market: Definition, Characteristics, and Strategies to Face It in the Crypto World
Technical Indicators of a Crypto Bull Market
How can you identify a crypto bull market? Several technical analysis indicators can be used to predict a crypto bull market.
Simple Moving Average (SMA)
The Simple Moving Average depicts the average price over a specific period.
- If the SMA line slopes upward, it is an upward trend
- If the SMA line slopes downward, it is a downward trend
More than one SMA line can be used to find trading signals.
- If the more sensitive SMA line (moves faster) crosses above the less sensitive SMA line (moves slower), this indicates a bullish signal.
- If the more sensitive SMA line crosses below the less sensitive SMA line, this indicates a bearish signal.
Also Read: What is Moving Average: How it Works, Types, and Strategies in the Crypto World
Moving Average Convergence/Divergence (MACD)
MACD is a technical indicator that analyzes the momentum of a trend.
A trend is considered bullish if the MACD line:
- Crosses above the 0 line
- Crosses from below to above the signal line
Conversely, the trend is bearish if the MACD line:
- Crosses below the 0 line
- Crosses from above to below the signal line
Relative Strength Index (RSI)
RSI measures the speed and changes of price movement. This index moves from 0 to 100.
- In a bull market, the RSI is in the 40-90 range, and the support zone is 40-50.
- In a bear market, the RSI is in the 10-60 range, and the resistance zone is 50-60.
Also Read: Cryptocurrency Technical Analysis: A Complete Guide to Reading the Movements of the Digital Market
Macro Factors that Affect the Crypto Bull Market
The crypto bull market is influenced by various factors that occur simultaneously. Sometimes, these factors originate from the blockchain industry, such as the introduction of new technologies or an increase in DeFi activity. However, they can also arise from macroeconomic changes.
In general, these macro factors signal the potential for a crypto bull market.
Bitcoin Halving
Every four years, Bitcoin undergoes halving, where the reward for mining new Bitcoin is cut in half. This halving system reduces the amount of new Bitcoin and creates scarcity.
Historically, halving has always pushed Bitcoin into a bull market. The last Bitcoin halving occurred in 2024, so the next halving will take place in 2028.
Liquidity Expansion
Crypto bull markets generally occur when more money circulates in the global financial system. This usually happens when central banks lower interest rates. People can borrow money more easily, so they become more eager to invest as a result.
Institutional Flows
A crypto bull market can occur if large investors from companies or institutions move large amounts of capital. If well-known companies invest in crypto, public confidence and trust increase.
Threat of Inflation
Inflation that affects the value of fiat currencies drives people to turn to long-term investments, such as gold and Bitcoin.
Technological Innovations
New innovations in the blockchain industry can trigger a major bull market. For example, when NFTs exploded in 2020, investor interest increased. Many people also learned about blockchain and entered the crypto market for the first time.
Sectors to Pay Attention to during a Crypto Bull Market
With thousands of projects on the market, novice investors and traders are often unsure about where to focus their investments during a crypto bull market. As a result, many people succumb to FOMO (Fear of Missing Out) and miss out on investment opportunities.
To maximize profits in a crypto bull market, don't just focus on Bitcoin, but also pay attention to other assets. These assets can be categorized into three sectors based on their similar characteristics and features. Here are the three crypto sectors that you should pay attention to during a bull market, as reported by XBTO.
Primary Sector
This sector contains assets designed to maintain their purchasing power over time. Bitcoin dominates 99.1% of the primary sector. However, tokenized gold, such as Tether Gold and PAX Gold, is also worth attention. These assets are suitable for preserving wealth and providing protection against inflation, so it is important to monitor them during a crypto bull market.
Core Sector
The core sector consists of fundamental technologies that drive blockchain utility and adoption, including stablecoins and utility tokens. One example of a rising utility token is Ripple (XRP), which rose 426.7% from 2024 to 2025 by market capitalization.
Ripple is widely used for cross-border payments and institutional use. If you want to invest in utility tokens, the core sector is worth considering during a crypto bull market.
Frontier Sector
The frontier sector includes memecoins, AI and big data, as well as GameFi and the metaverse. Simply put, this sector consists of innovations and speculative trends.
In the previous crypto bull market phase, many new meme coins emerged and reached levels of popularity that surpassed even the NFT craze. Their roots in Gen Z internet culture attract attention and interest. The most famous example is Dogecoin (DOGE), which dominates 85.3% of the meme coin market.
Analysts are still unable to predict whether meme coins will be able to survive in the long term. However, they undeniably hold relevance and influence on the market.
Risks to Be Aware of during a Crypto Bull Market
The crypto bull market phase is full of excitement and optimism. However, consider these risks to avoid making the wrong move in a crypto bull market.
Fear of Missing Out (FOMO)
FOMO is one of the biggest risks that can threaten your potential earnings in the crypto bull market. FOMO can entice both novice and experienced investors to buy a hyped asset after seeing other investors reap huge profits.
Don't chase trends without doing your research first. Always look into the background, development team, and technology used in a project. Instead of following what others say, rely on your own research and judgment.
Excessive Greed
Experienced investors may have heard the saying “buy low, sell high.” Buy when prices are down, and sell when prices are up. But when should we sell our assets if prices keep rising?
It is natural to want to hold onto assets until prices reach their peak. However, in reality, no one can predict the peak of a crypto bull market phase.
Instead of holding onto assets forever and waiting for a peak that may never come, it is better to take profits regularly. Set investment goals, such as a percentage gain or price target for each asset you own.
Security
In a crypto bull market phase, everyone wants to profit, including hackers. To protect your personal assets from attacks, secure your wallet with a strong password and enable two-factor authentication. It is also a good idea to store your crypto offline in a cold wallet.
Volatility
A crypto bull market does not guarantee that prices will rise consistently. The crypto market is always volatile, so prices can still fall or pull back. Don't panic, this could be an opportunity to buy at a “discount” to grow your portfolio.
Conclusion and Crypto Bull Market 2026 Predictions
A crypto bull market is a situation where crypto asset prices rise by at least 20%, accompanied by increased buying activity and a sense of optimism and excitement in the market.
After the disappointing performance of crypto in 2025, will 2026 bring a crypto bull market? Some analysts predict that 2026 will be a breakout year for cryptocurrency.
This is driven by increasingly crypto-friendly White House policies, increased institutional adoption, and rapid spot ETF growth. In addition, the Bitcoin halving in 2024 is predicted to trigger a crypto bull market phase in 12 to 18 months. Bitcoin Suisse even predicts that BTC will reach a new all-time high and approach a selling price of $180,000.
Investors and analysts are entering 2026 with optimism, but investors should still do their own research before purchasing assets. Always remember that the crypto bull market is still filled with volatility, so a thorough crypto analysis remains essential. Learn how to analyze crypto before investing in the article Crypto Analysis for Beginners: Fundamental vs Technical.
