If a bull market is coming, keep an eye on these 3 market signals
As of writing, the price of Bitcoin has reached $18,500, which is only one step away from the last bull market of $20,000. Ethereum has also successfully broken through the $500 mark. Not only Bitcoin and Ethereum, but also other currencies ushered in a general rise yesterday.
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1. More and more high-net-worth individuals are paying attention to Bitcoin
A recent survey by financial advisory firm deVere Group revealed that nearly three-quarters of the more than 700 high-net-worth individuals surveyed already own or are planning to invest in cryptocurrencies by the end of 2022. This figure is an increase from 68% in 2019.
The participants are all individuals with more than 1 million pounds (approximately 1.32 million U.S. dollars), and they come from the United States, the United Kingdom, Asia, Africa, the Middle East, Australia and Latin America.
It is worth noting that these rich people said, "They increasingly understand that digital currency is the future of money, and they don't want to be left in the past."
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2. Mexico’s third richest man invests in Bitcoin
Recently, Ricardo Salinas Pliego, a wealthy Mexican businessman and founder of retail giant Grupo Salinas, tweeted to recommend the Bitcoin-related book "The Bitcoin Standard" to netizens, saying that this book can deepen the understanding of Bitcoin.
He said that Bitcoin can protect citizens' property from government confiscation, and he has invested 10% of his liquid assets in Bitcoin.
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3. Li Qiyuan expects Bitcoin to be at a maximum of 330,000 US dollars
On the afternoon of November 20th, Ballet founder Li Qiyuan Bobby expressed the following views in an online AMA sharing:
1. "The bull market hasn't really started yet. I think the bull market will start when the price of Bitcoin breaks $20,000"
2. "No one can really exit at the top of the bull market. But there is a way to judge the top, that is, if Bitcoin increases by more than 50% within 24 hours on a certain day, then it can be roughly judged that the price has reached the top"
3. "If the bull market comes in the next year, Bitcoin can rise to the range of 150,000-200,000 US dollars, and the highest point will be around 330,000 US dollars."
4. "Bitcoin leads the bull market, but mainstream currencies will rise more fiercely. The reason is that other mainstream currencies are not deep enough, so the rise will be larger, but it will rise later. When it rises, it is fiercer than Bitcoin, and when it falls Sometimes it will fall even worse."
These news clearly show that the market has started to warm up now, which is very similar to some performances in the early stage of the bull market: for example, large households and institutions have begun to deploy in an undercurrent, while retail investors are still on the sidelines.
In Li Qiyuan's view, the bull market will not be considered until Bitcoin reaches $20,000. In my opinion, if Ethereum does not exceed the peak value of the previous round of $1,400, then this round of the market is not considered a bull market.
I agree with Li Qiyuan's opinion that once the bull market comes, other mainstream currencies will rise faster than Bitcoin, and I think that if the big market comes next, the top projects in the DeFi field will regain their glory.
During the 2017 bull run, Bitcoin peaked on December 17, 2017, and Ethereum peaked a month later in January 2018.
This trend is likely to repeat itself in the next market: Bitcoin will peak first, Ethereum will peak second, and value coins such as DeFi top projects will peak after Ethereum.
Therefore, my suggestion to everyone is to pay close attention to three market signal points: first, Bitcoin exceeds $20,000, which may mark the beginning of a bull market; second, Ethereum exceeds $1,400, which may mark the beginning of a bubble ; The third is that the general increase in DeFi projects has reached 10 times or more of the current price, which may be the last madness of the bubble.
