Bull Market or Fakeout? How to Know Before You Buy Crypto

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Crypto Twitter says the bull market is back—but is it really?
Seasoned investors know that price pumps alone don’t confirm a true bull cycle.

Here’s what you should actually watch for before going all-in on the next potential bull run:


1. Confirmed Higher Highs and Higher Lows

A real bull market needs higher highs and higher lows on the chart, not just short-term spikes.
Look for weekly and monthly timeframes showing solid uptrends.

📊 Why it matters:
This pattern confirms sustained demand and market strength, not just FOMO pumps.


2. On-Chain Activity Explosion

A key signal of a bull market is rising on-chain activity:

  • More active wallets
  • Surge in transactions
  • DeFi and NFT volumes climbing

When network usage mirrors price action, it’s a stronger sign the rally has legs.


3. Exchange Outflows Increase

When investors pull coins off exchanges into cold storage, it shows confidence in long-term holding, a classic bull sign.

Conversely, rising exchange balances often hint at potential sell-offs.


4. Funding Rates & Open Interest

Watch for sustainable, not extreme, funding rates on futures platforms.
Overheated markets with extreme long positions can lead to painful corrections.


5. Sentiment Indicators & Fear/Greed Index

Use the Crypto Fear & Greed Index, social sentiment tools, and Google Trends.
A shift from extreme fear to neutral/greed territory often signals early bull cycle stages.


Final Takeaway

Don’t let influencers or hype dictate your moves.
A true bull market shows up in charts, on-chain data, exchange flows, and sentiment—all in harmony.
If they all point bullish, then you can confidently start scaling in.
If not? Patience is still the alpha strategy.

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