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When Is The Next Crypto Bull Run?

The next crypto bull run, a highly anticipated event in the financial world, promises significant gains for investors according to many analysts and experts. This guide explores the dynamics of such crypto bull runs, their historical impact, and the potential triggers that could ignite the next bullrun. With a focus on Bitcoin’s influential role and expert insights into the possibilities for 2023 and 2024, we aim to provide a comprehensive understanding of what the future holds for crypto investors.

Crypto Bullrun Phenomenon Explained

The term ‘crypto bull run’ is more than just a buzzword in the world of digital finance; it’s a phase of significant importance. A crypto bull run occurs when the market experiences a prolonged period of rising cryptocurrency prices, often characterized by high investor confidence and increased buying activity.

This phenomenon is not just about the upward trend in prices; it represents a broader shift in market sentiment, often fueled by various economic, technological, and socio-political factors. Understanding the crypto bull run requires a look at its core elements:

  • Market Sentiment: The collective optimism of investors plays a pivotal role. Positive news, technological advancements, or favorable regulations can boost confidence, leading to increased investments and higher prices.
  • Increased Adoption: Wider acceptance and use of cryptocurrencies, both by individuals and institutions, often correlate with bullruns. As more people and businesses embrace crypto, demand rises, pushing prices up.
  • Technological Innovations: Breakthroughs in blockchain technology or the launch of new and promising projects can trigger a bullrun. Innovations that solve existing problems or offer new possibilities can attract investors.
  • Global Economic Factors: Economic conditions, such as inflation rates, currency devaluation, and changes in monetary policy, can influence the crypto market. For example, investors might turn to crypto as a hedge against inflation, sparking a bullrun.
  • Network Effects: The increasing utility and network growth of a particular cryptocurrency can lead to a crypto bull run. As more people use and hold a cryptocurrency, its value often increases, creating a positive feedback loop.

In essence, a crypto bull run is a complex interplay of these factors, leading to a sustained increase in prices. While the exact timing and duration of a crypto bull run are unpredictable, understanding these elements helps investors make informed decisions in the rapidly evolving crypto landscape.

Understanding The Term “Bullrun”

The term “bullrun” in the financial world, particularly in cryptocurrency, refers to a market condition where prices are rising or are expected to rise. The origin of the term ties back to how a bull attacks its opponents, thrusting its horns upward – symbolizing the upward movement of the market.

In contrast, a bear market is characterized by declining prices, reduced investor confidence, and generally negative sentiment. These terms – bullish vs. bearish – reflect the prevailing mood in the market: bullish for upward trends and bearish for downward trends.

Historical Overview Of Crypto Bull Runs

The cryptocurrency market has seen several notable bull runs since its inception, each marked by significant price surges and investor enthusiasm. Here’s a brief overview:

  1. The Early Days (2009-2012): After Bitcoin’s creation in 2009, the first notable bull run occurred in 2011, when Bitcoin’s value reached $1 for the first time and subsequently peaked around $32, showcasing the potential of decentralized digital currencies.
  2. The 2013 Surge: Two major bullruns characterized 2013. Initially, Bitcoin’s price soared to $266 in April, driven by increased media attention and investor interest. Later in the year, it spiked again, reaching over $1,000, fueled by factors like the popularization of Bitcoin in China and improved market infrastructure.
  3. The 2017 Boom: Marked as one of the most dramatic, the 2017 bull run saw Bitcoin’s price reaching nearly $20,000. This period was characterized by the ICO (Initial Coin Offering) craze, mainstream media coverage, and a significant influx of retail investors.
  4. The 2020-2021 Rally: Triggered by a combination of institutional investment, extreme levels of liquidity in the entire financial markets due to central banks printing excessive amounts of money (due to COVID-19), and increased interest in decentralized finance (DeFi), Bitcoin again reached new heights, surpassing $60,000 in 2021.

Bitcoin and crypto bull run history

Significant corrections or bear markets followed each of these bull runs, demonstrating the cryptocurrency market’s cyclical nature. These periods have been crucial in shaping the landscape of the Bitcoin and crypto market.

Bitcoin’s Role In The Crypto Bull Market: The 4-Year Cycle Theory

Bitcoin’s influence on the crypto bull market closely ties to its 4-Year Cycle Theory, driven predominantly by the cryptocurrency’s halving events. Occurring about every four years or every 210,000 blocks, these events cut the Bitcoin mining reward in half, thus reducing the rate of new bitcoin generation.

This halving mechanism is integral to Bitcoin’s design, intended to create scarcity and control inflation, mirroring the extraction of a natural resource becoming more challenging over time. The theory posits that this reduced supply, in the face of steady or increasing demand, drives up the price of Bitcoin, often leading to a Bitcoin and crypto bull market phase.

Historical data supports this theory. For instance, the first halving in 2012 saw Bitcoin’s price increase from about $12 to over $1,100 in the following year. Similarly, the 2016 halving preceded a significant bullrun, culminating in Bitcoin’s late-2017 peak near $20,000. The most recent halving in 2020 also led to substantial price gains, with Bitcoin reaching new all-time highs in November 2021.

This pattern of post-halving bull runs not only boosts Bitcoin’s value but often triggers a market-wide crypto bull run. Bitcoin’s market dominance and its role as a digital gold standard mean that its price movements significantly influence the entire cryptocurrency market.

However, these bullish phases are not permanent. Post-halving surges are often followed by corrections, leading to bear markets. This cyclical nature emphasizes the speculative aspects of Bitcoin and the broader crypto market, underscoring the importance of market timing and risk management for investors.

Crypto bull run

Key Triggers For The Next Crypto Bull Run

Several concrete events and developments as of November 2023 could potentially trigger the next crypto bull run. These include specific milestones and regulatory shifts that could significantly impact investor sentiment and market dynamics.

  • Bitcoin Halving In April 2024: The Bitcoin halving, which is expected to occur in April 2024, is a significant event for the Bitcoin and the broader cryptocurrency market. If history repeats itself, it could mark the beginning of the next crypto bull market.
  • Approval Of The First US Spot Bitcoin ETF (Expected January 2024): Currently, the US SEC is actively collaborating with financial heavyweights such as BlackRock, Fidelity, VanEck, Invesco, Galaxy, Ark Invest, and Grayscale, fine-tuning the final details of ETF applications for potential approval. Analysts estimate a 90% chance of at least one spot Bitcoin ETF receiving approval by January 10, 2024.
  • First US Spot Ethereum ETF (Expected Sometime In 2024): The world’s largest asset manager, BlackRock, filed an application for a spot Ether ETF with the SEC. Moreover, Bitwise, Grayscale and Galaxy, among others, have also filed applications. Market analysts believe that spot Ethereum ETFs have good chances, given the fact that there are already Ethereum Futures ETFs in the US.
  • Ripple vs. SEC Case: The cryptocurrency industry is closely watching the legal dispute between Ripple and the SEC, which is inching closer to a final judgment. This case’s outcome will significantly influence the regulation of altcoins in the United States.
  • Coinbase vs. SEC Case: The legal showdown between Coinbase and the SEC could have notable implications for crypto regulation and the status of various tokens under SEC purview​​. Thus, a victory by Coinbase could also be a major catalyst for a crypto bull run.

When Is The Next Crypto Bull Run?

The question on every cryptocurrency investor’s mind is: When is the next crypto bull run? Predicting the precise timing of a bull run in the highly volatile and unpredictable crypto market is challenging. However, by analyzing current trends, upcoming events, and market sentiment, we can attempt to estimate when the next surge in cryptocurrency prices might occur.

Bull Run Crypto: Has It Already Started?

Despite the fact that the Bitcoin price is still -45% away from its all-time high, Ethereum even -58%, XRP -82%, Solana -77% and Cardano -87%, there is currently a bullish sentiment across the entire crypto market. There is no definitive definition of when a bull market begins, which is why opinions may differ.

However, the fact is that Bitcoin and crypto have made massive gains year-to-date (as of November 30, 2023): Bitcoin has risen by 127%, Ethereum by 70%, XRP by 75%, Solana by as much as 508%. Thus, one can argue that we are at the beginning of the next crypto bull run.

Furthermore, it can be argued that the Fear & Greed Index can be used as an indication of a Bitcoin and crypto bull run. Typically, the indicator is very high for a very long time (with a few dips) during a bull market. A look at the development over the last year shows that sentiment has clearly turned from fear to greed. In this respect, the indicator can serve as a sign that we are in an earlier phase of the crypto bull run.

Crypto Fear & Greed Index
Expert Analysis: Crypto Bull Run 2023/2024

In a recent post on X, renowned crypto analyst Miles Deutscher remarked that altcoins could gain strength ahead of the Bitcoin halving in mid-April next year, if history repeats:

Is Bitcoin dominance following the same pattern from last cycle? In 2019, dominance topped out in September – before alts gained steam into the halving. In 2023, dominance looks to be exhibiting a similar pattern – which would indicate a reversal into the halving.

Crypto bull run pre-halving

Meanwhile, crypto analyst highlighted a bullish trend for the entire crypto market cap (Bitcoin + altcoins):

The total market capitalization for crypto is still seeking for continuation here. Higher lows, higher highs, which means that dips are there to be bought. Next target remains $1.8 trillion.

Total crypto market cap
Bitcoin Bull: Projecting The BTC Price For 2023/2024

Nevertheless, Bitcoin has always been the leading indicator for the entire crypto market in the past. Thus, it’s interesting to project how the Bitcoin price could evolve in the coming months, pre- and past-halving. Crypto analyst Rekt Capital has provided a detailed analysis of the phases surrounding Bitcoin’s Halving, projecting potential market trends for 2023/2024:

  1. Pre-Halving Period: According to the analyst, we are currently in this phase, with about 5 months left until the Bitcoin Halving in April 2024. Historically, this period offers high return on investment opportunities, especially after any deeper market retraces.
  2. Pre-Halving Rally: Expected to start around 60 days before the Halving. This phase typically sees investors buying in anticipation of the event, aiming to sell at its peak.
  3. Pre-Halving Retrace: Occurring around the Halving event, this phase has historically seen significant retraces (e.g., -38% in 2016 and -20% in 2020). It often leads investors to question the Halving’s bullish impact.
  4. Re-Accumulation: Post-Halving, this stage involves multi-month re-accumulation, where many investors may exit due to impatience or disillusionment with Bitcoin’s performance.
  5. Parabolic Uptrend: Following the breakout from re-accumulation, Bitcoin is expected to enter a phase of accelerated growth, potentially reaching new all-time highs.

Bitcoin and crypto bull run cycle

Rekt Capital’s analysis offers a roadmap, outlining potential expectations for the coming months by drawing on historical patterns linked to Bitcoin halvings.

Renowned financial expert Charles Edwards, founder of Capriole Investments, also has a theory. According to him, Bitcoin is currently in an early bull market phase that began at around $31,000 per BTC and will end at around $60,000. The mid Bitcoin bull phase goes up to $90,000. The late Bitcoin bull phase ends at $180,000, according to him.

Bitcoin bull run

Factors Affecting The Crypto Bull Market

Several factors can significantly influence the trajectory of a crypto bull market. These include macroeconomic conditions, regulatory changes, technological advancements, market sentiment, and institutional involvement. Understanding these factors is crucial in assessing the potential and duration of a bull run in the cryptocurrency market:

  • Bitcoin Halving Cycle: It is important to recognize that each cycle has had its dramatic end. When investors take profit on their (massive gains), the Bitcoin and crypto bull run can suddenly end (while most influencers tout that BTC and crypto will “go to the moon”)
  • Macroeconomic Conditions: Global economic trends, like inflation rates, monetary policies, and especially market liquidity, play a significant role in shaping investor confidence and behavior in the crypto market. Following the macro environment can be crucial.
  • Regulatory Landscape: Regulatory decisions and policies regarding cryptocurrencies can dramatically affect market sentiment and investor participation. Positive regulatory like a victory by Coinbase or Ripple Labs against the US SEC can initiate or further bolster a crypto bull run. However, regulatory crackdowns can also bring a bullrun to an abrupt end.
  • Technological Advancements: Innovations in blockchain technology, scaling solutions, and new applications (such as DeFi and NFTs) can attract new investors and boost market growth.
  • Market Sentiment: Public perception (Fear & Greed Index), media coverage, and overall investor sentiment can drive market trends. Positive news and investor optimism often fuel bull markets.
  • Institutional Involvement: The entry of institutional investors into the crypto space can bring significant capital, legitimacy, and stability to the market, potentially driving a bullrun. If more companies like MicroStrategy add Bitcoin (or altcoins) to their balance sheet on a larger scale, or more countries like El Salvador use it as a national reserve, this will strengthen the market and likely drive prices higher.

Next Crypto Bull Run Predictions: Price Targets

As we approach the anticipated Bitcoin halving in April 2024 and with growing excitement around Bitcoin ETFs, various experts and financial institutions have offered their predictions for Bitcoin’s price in 2024:

  • Pantera Capital predicts a rise to approximately $150,000 post-halving, based on the stock-to-flow model.
  • Standard Chartered Bank forecasts Bitcoin could soar to $120,000 by the end of 2024.
  • JPMorgan estimates a more conservative target of $45,000 for Bitcoin.
  • Matrixport suggests Bitcoin could reach $125,000 by the end of 2024.
  • Tim Draper maintains a bullish prediction of $250,000, possibly by 2024 or 2025.
  • Berenberg predicts a value of around $56,630 by the time of the Bitcoin halving in April 2024.
  • Blockware Solutions presents an ambitious forecast of $400,000 during the next halving epoch.
  • Cathie Wood’s (ARK Invest) offers an ambitious projection of Bitcoin reaching $1 million
  • Mike Novogratz (Galaxy Digital) predicts a potential surge to $500,000.
  • Tom Lee (Fundstrat Global) sees Bitcoin possibly climbing to $180,000.
  • Robert Kiyosaki (Rich Dad Company) anticipates a rise to $100,000.
  • Adam Back (BlockStream CEO) also predicts a $100,000 valuation for Bitcoin.

These diverse predictions highlight the varied expectations from different sectors of the finance and crypto industry, reflecting the speculative and dynamic nature of crypto bull market.

FAQ Next Crypto Bull Run

When Is The Next Crypto Bull Run Predicted?

The next crypto bull run is difficult to predict precisely. However, experts point towards late 2023 to 2024, aligning with events like the Bitcoin halving in April 2024 and potential regulatory developments.

When Is The Next Bull Market In Crypto?

Predictions for the next bull market in crypto vary, with many analysts eyeing 2024 post the Bitcoin halving, assuming favorable regulatory and market conditions.

When Is The Next Crypto Bull Run Expected?

Expectations for the next crypto bull run are particularly high around 2024, driven by the Bitcoin halving and potential ETF approvals.

When Will The Next Crypto Bull Run Be?

While exact timing is uncertain, the next crypto bull run could potentially start building up in late 2023 and gain momentum through 2024.

When Is the Next Bull Market?

The next general bull market, including crypto, might coincide with improved macroeconomic conditions and institutional adoption, possibly around 2024.

When Is the Next Bull Run?

Many anticipate the next bull run for cryptocurrencies will begin leading up to the 2024 Bitcoin halving, provided market and regulatory conditions are supportive.

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Synthetix (SNX) Shines As TVL Hits $670M, Analyst Predicts Continued Upswing

Synthetix (SNX), currently positioned as the 54th largest cryptocurrency, has been closely aligned with the overall market trend. Over the past 30 days, SNX has experienced a substantial uptrend of 60%, while its year-to-date performance shows an impressive price increase of over 108%. 

These notable achievements indicate the potential for continued bullish momentum for the decentralized protocol and its native token.

Significant Growth For Synthetix As Demand For On-Chain Derivatives Surges

Renowned cryptocurrency analyst and writer, Jake Pahor, has expressed a highly optimistic outlook on SNX, hailing it as the ultimate “picks & shovels play” in anticipation of the forthcoming bull market. 

Pahor highlights Synthetix’s pivotal role as the backbone for derivatives trading in the decentralized finance (DeFi) sector. The protocol has already amassed an annualized revenue of $54 million, serving as a platform that enables the creation and trading of synthetic assets such as commodities, stocks, and currencies.

While Synthetix may not have user-facing front-ends, it powers popular DeFi applications like Kwenta, Polynomial, dHedge, and Lyra. As the demand for permissionless trading of spot synthetics and on-chain derivatives of traditional assets continues to rise, Synthetix stands poised for significant growth in the coming years, according to Pahor.

Notably, a key driver of Synthetix’s success lies in the fees generated on every synthetic asset exchange, ranging from 0.1% to 1% (average 0.3%). These fees are directed towards SNX stakers, creating a rewarding incentive structure. 

SNX, sUSD, and eSNX are the three primary tokens utilized within the Synthetix ecosystem, each serving distinct purposes in staking, collateralization, and protocol functionality.

With a circulating supply of 326.5 million SNX tokens and a total supply of 327.2 million, Synthetix boasts a market cap of $1.14 billion, placing it at the forefront of the Synthetics category. The protocol’s treasury holds a healthy $145.96 million, including stablecoins, BTC/ETH, and its token SNX.

SNX Bulls Poised For Breakout Opportunity

Synthetix operates under the governance of four key bodies: Spartan Council, Treasury Council, Ambassador Council, and Grants Council. These councils’ Decisions and proposals are subject to majority votes from SNX stakers, ensuring a democratic and community-driven approach to protocol development.

It was established as Havven in 2017, a stablecoin protocol, the project rebranded in 2018 to become Synthetix, focusing on synthetic assets and derivatives trading. 

According to Pahor’s analysis, with a “strong ecosystem” of projects built on its infrastructure and a first-mover advantage, Synthetix has established itself as the market leader in the Synthetics category.

Furthermore, the impending release of Synthetix V3, including Perps, Base, and USDC, is expected to be a significant catalyst for the protocol. Additionally, the protocol’s DEX perps feature aims to compete with centralized exchanges, while the Infinex front-end promises a user experience akin to traditional CEX trading.

Synthetix

Currently, SNX is trading at $3.455, reflecting a significant 4.7% uptrend over the past 24 hours. This positive momentum follows a 31% gain over the last fourteen days. 

In the immediate future, SNX faces a crucial hurdle in surpassing the resistance level at $3.58, which is necessary to retest its recently achieved yearly high of $3.810. As SNX reached this high only a few hours ago, its next target is to surpass the $4 mark, a level not seen since August 2022.

On the other hand, if a short-term pullback or correction unfolds for SNX, it will be crucial for bullish investors to defend the $3.035 support level. Maintaining this level can sustain a favorable bullish trend throughout the remainder of the month.

Featured image from Shutterstock, chart from TradingView.com 

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Can The ADA Price Climb Above $20 In The Bull Market? Analyst Provides Answers

The ADA price has always performed incredibly well in the bull market cycles with price rallies that have put millions of holders in profit in the past.

However, like any other cryptocurrency, it can be hard to pinpoint how high the price will climb in the next bull market. Nevertheless, one crypto analyst is taking the bull by the horns to reveal where they expect the altcoin’s price to reach in the next bull market.

ADA Price Could Rise As High As $24

In an analysis posted to TradingView, crypto analyst masoud_paydarsani outlines how the ADA price could rise to double-digits. First, the analyst points to Cardano’s ADA token being a long-term upward channel on the weekly time frame, albeit a rather slow uptrend.

However, this does not invalidate its bullish tendencies, especially when it comes to ADA repeating its previous bull market cycles. Masoud points to the fact that the past crypto market cycles saw approximately 108 weeks of the bear market before 66 weeks of the bull market, and it is within these 66 weeks that ADA shines.

Cardano ADA price chart from Tradingview.com

The analyst believes that if the upward channel is validated, then the next ADA bull run could turn out like the rest. Using the previous performances of the altcoin, eg, the run-up in the year 2021, the ADA price could rise to as high as $24 following the same trend. Also, going by historical performance, the crypto analyst reveals that this could happen sometime in the next 66 weeks. So it could lead up to 2025 before this rally is complete.

Being Bullish For ADA Above $20

Interestingly, the expectation for the ADA price to cross the $20 mark is not unique to Masoud alone. Another crypto analyst, @LucidCiC on X (formerly Twitter) also believes that this double-digit level is possible for ADA.

Lucid actually has an even higher price target for the altcoin compared to Masoud. Where Masoud sees the ADA price reaching $24, Lucid’s forecast goes as high as $30. Lucid compares Cardano to the Ethereum network which was able to reach a $500 billion market cap despite going through multiple hurdles. Given this, the analyst believes Cardano will also be able to rise as well while expecting the crypto market cap to cross $10 trillion in a decade.

Cardano is also seeing a good amount of interest from institutional investors. Grayscale Investments, the company behind the largest Bitcoin trust in the world, recently announced new crypto indices featuring ADA in response to this rising interest. If these large investors continue to double down on their investments, this newfound inflow could drive the price to the double-digit mark predicted by the analysts.

Cardano (ADA) price chart from Tradingview.com

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When Will The Bitcoin Bear Market End? US Mega Bank Has The Answer

In a recent development, leading investment bank Morgan Stanley has weighed in on when the lingering Bitcoin bear market is likely to end. Interestingly, they share some similar views with analysts who have made predictions in the past. 

Bitcoin Halving A Major Factor

In an article released by the investment bank, Morgan Stanley highlighted Bitcoin’s importance as the leading crypto and how the Bitcoin Halving, which is set to take place in April 2024, could affect its price and other crypto tokens by extension. 

Bitcoin halving is a deflationary measure that occurs every four years, during which the rewards of miners are ‘halved’, thereby creating scarcity. According to the bank, this event could potentially trigger a bull run as it has done in the past. 

The article further noted how there have been such bull runs in the past following the three halving events that have occurred and how the bull run lasted for 12 to 18 months after then. 

Morgan Stanley’s prediction echoes that of several crypto analysts who have predicted that the Bitcoin Halving could spark the next bull run. Specifically, the co-founder of Delphi Digital, Kevin Kell, while highlighting metrics that showed that the next bull run was close, noted that Bitcoin has broken to a new all-time high (ATH) seven months after the last two halvings occurred.

Understanding The Four Phases Of Crypto

While trying to avoid giving a definite time as to when to invest ahead of the next bull run, Morgan Stanley noted the importance of learning about the ‘four phases of cryptocurrency prices’ in order for one to make a conviction play as to the right time to invest. These four phases are said to correspond roughly to the four seasons of the year. 

The first phase is ‘Summer’ when Bitcoin experiences the most gains, which comes after the halving. The bull run is said to begin with the event and continue when Bitcoin’s price hits its prior peak. The next is the ‘Fall’ when the price “surpasses the old high.” This is the period when the bull market runs its full course after reaching a new high.

After ‘Fall’ comes ‘Winter’, which is when the bear market surfaces as this is the period that investors are locking in their gains, resulting in a massive sell-off. This usually occurs between the “new peak and the next trough.” Historically, there have been three winters, with each of them lasting for about 13 months. 

‘Spring’ is the last phase in the cycle and the one that potentially kickstarts the next bull run (another Summer). This is the period “preceding each halving,’ when Bitcoin’s price “generally recovers from the cycle’s low point, but investor interest tends to be weak.”

By understanding these phases, crypto investors could be well-prepared to take advantage of the next bull run to make the most profits.

Bitcoin price chart from Tradingview.com (US mega bank Morgan Stanley Crypto bear market)

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Crypto Investor Buying Power Just Reached A 6-Month High, What This Means

For the crypto market to fully enter another epic bull run, investors must be willing to purchase digital assets in large quantities. After a long stretch of abysmal performance, it looks like crypto investors are finally starting to believe in the market as they begin to pool their buying power to enter back into the market.

Crypto Buying Power At 6-Month Highs

An interesting development reported by the on-chain data tracker Santiment is the accumulation of Tether’s USDT stablecoin by crypto investors. As Santiment points out, the total amount of USDT being held on exchanges saw a notable uptick recently.

The figure which takes into account the total USDT held across the top exchanges went from only 17.6% of the stablecoin’s circulating supply to a whopping 24.7%. This 7.1% jump represents the growing interest of investors to get back into the market which could be bullish for prices.

As always, the large whales led the charge in this accumulation trend. The top 10 largest wallets saw their combined holdings rise from $7.23 billion to more than $9.42 billion in the same timeframe.

Crypto buying power stable coins

Now, when investors start upping their stablecoin holdings, it signals a readiness to begin buying digital assets once more and also shows the current buying power. As the amount of USDT held on exchanges has crossed over to a 6-month high, it could point toward the start of the largest rally seen in the market in 2023.

The accumulation being spread across large and small wallets alike shows that this is not a localized sentiment. Rather, most investors are seeing genuine chances for an upside and are looking to harness some of those gains for themselves.

Crypto total market cap chart from Tradingview.com (Stablecoins USDT)

What To Expect

After accumulating a large tranche of stablecoins as illustrated in the Santiment report, crypto investors would often wait for a good time to deploy it. This is usually when the market experiences a notable crash, plunging the entire space into the red.

At this point, investors would be looking to get back into coins at a time when they look to be on discount. This is often when the market forms support and then prices begin to surge not too long afterward.

Mainly, these stablecoins will be deployed into the largest digital assets first such as Bitcoin (BTC) and Ethereum (ETH). Then once there are enough profits, investors will usually rotate into smaller cap coins, which is why altcoins tend to delay a bit in following Bitcoin’s recovery.

Such a scenario will likely see the price of Bitcoin rally toward $29,000 and then bring the crypto market cap above $1.1 trillion once more.

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Crypto Is On The Brink Of Explosion As 9-Year DXY Formation Returns

An inverse correlation between the crypto market and the DXY has often helped to signal when a bull rally is on the horizon. One of the most notable instances of this happened 9 years ago, and since then, the formation has not returned, until now, signaling a massive price surge in October.

DXY Readies To Clock 12th Consecutive Candles

In an X (formerly Twitter) post, crypto analyst TheCryptoMann has revealed an important formation in the DXY. The DXY is the United States Dollar Index which measures the value of the dollar to other major (6) currencies around the world.

Now, since Bitcoin is often touted as an alternate and better currency to the likes of the US dollar, there is often some competition between them leading to an inverse correlation over the years. This is why this DXY formation is important.

As TheCryptoMann points out, the DXY is headed toward a 12th consecutive green candle which is bullish for the crypto market. This is because the last time that this happened was in 2014, and the results were very bullish for crypto.

The analyst explains that when this happened in 2014, the DXY had fallen 8%. Crypto had then gone in the opposite direction, mounting a rather impressive rally. A look at the chart shows that in the year 2014, the crypto market went from $5.4 billion to over $8.2 billion, an over 50% surge in price.

Crypto total market cap chart from Tradingview.com (DXY)

A Bullish Time For Crypto

TheCryptoMann likens the current movement to what took place in 2014 and actually expects this movement to repeat once more. As he explains, the incoming correction in the DXY will see the crypto market explode as it did 9 years ago.

He also points out that “the DXY is also being rejected from the 0.5 FIB Retracement level from its most recent local highs and lows!”

He further added:

There is a clear inverse correlation between the DXY and the cryptocurrency market. So over the next month, we’re about to see some major price movements, so eyes on the market.

Another analyst Cryptoinsighuk also seems to share the views of TheCryptoMann as he also believes there is correction coming for the DXY. “Also, whilst sentiment is this bad we are having the SBF trial. This is negative towards Crypto, tells me the bottom could be very close in this move,” the analyst added.

If TheCryptoMann’s forecast is correct, then the crypto market could be getting ready for a massive move to the upside. A similar rally would see the total market cap go from $1.065 trillion currently to over $1.5 trillion, signaling a bullish end to the year 2023.