7 Signs the Bitcoin Bull Phase is Back

Economically, this world moves around in cycles. And with the historical data we have, every economic event ends up conforming to the cycle. The cycle always wins. It is as though humans are predictable, as much as we think we aren’t. There are 4 phases of the crypto cycle, and we have just entered the bullish phase again.

In my crypto book, I explained all 4 phases of the cycle. I already called the bullish phase to my Rich Culture newsletter subscribers at $27k. So, this is not about Bitcoin breaking $30k or staying there. If you doubt my call, you can check my record here and here (and pay attention to the publish dates).

To be sure crypto has entered the bullish phase, we have to ensure it has existed in the previous phase. You can read about all the analyses in my book. But in summary, here are the signs the bull phase is here again.

1. The Worst Has Happened

The FTX collapse is what a crypto bottom looks like. You would recall that I kept saying we were not at the bottom yet until FTX happened. This is because at the bottom of every crypto cycle, something big breaks that signals "it's over" to all the tourists and noise makers.

There was nothing significantly bigger than FTX that could crash. So, it was clear that was the worst.

2. Gradual Optimism isn't Getting Solid Pushback

The skeptics are gone. The optimism is pure and natural. The only people left are those who appreciate the fundamentals. Nobody is expecting a rapid jump.

It is when nobody is expecting a rapid jump that Bitcoin often jumps. However, this alone is not enough to justify a change of phase.

3. Crisis on the Horizon

The world is on the precipice of war. There are two basic fronts - Ukraine and the Middle East. And the US dollar is being printed to fund both.

This is producing some inflationary pressures. And that is not good for the valuation of the USD. But it is withstanding the pressure because every other currency is pegged to USD.

If the inflationary pressure gets too much, the inflationary pressures may force investors to jump into Bitcoin as a haven. The US bonds are already having a hard time as concerns about the US debt grows.

4. Deals in Crypto

There are rumors of economic sanctions based on the developments in the Middle East. This will drive a lot of rich people in certain regions to want to do deals in Bitcoin.

People who want to do significant trade deals but don't trust the liquidity of their banks are also starting to look in the bitcoin direction.

5. Good News

The bullish phase always has a piece of good news driving the entry. And this time, it is the BlackRock ETF. Now, the point is not whether there will be a BlackRock ETF or not. The point is that it is a legitimate good news that makes people excited to buy bitcoin.

Over the medium and long term, the ETF may not make a difference. But the fact that it is good news for Bitcoin adoption is a driver for the bullish case.

6. Less Confusion

There is less confusion. There is a convergence of new ideas in the crypto world to just bitcoin. When there is a divergence, it is another signal entirely. But convergence signals a new bullish phase.

And you can tell we are out of the confusion phase. All the confusing cases have been resolved to a large extent, including the fake Satoshi and the like.

7. All the Fake Gurus are Mostly Silent

When there is an uptick in price, and the fake gurus are not shouting their lungs out, that is a big sign. Now, the bitcoin price can rise at its own pace.

When the gurus shout, it is mostly because the whales are pumping. And the thing with pumps is that they are closely followed by dumps.

The latest upward move in price by bitcoin has a lot of fundamentals going on with it. This is why it can be sustained. Normally, people expect it to drop back those gains. But that isn't happening. And even if it eventually happens, the momentum of the cycle is big enough to start rolling in the opposite direction.

Conclusion

The Bitcoin bullish phase is here again. That doesn't mean the price won't drop on some days. And that doesn't mean people won't lose money. If you are investing in crypto, always follow a strategy.

The bullish phase is here. But it is also indicative of the next phase that follows the bull. Even though this phase will be long and gradual, the next crash will come when everybody thinks bitcoin is too strong and can never go lower again. That next crash will be brutal, as usual.

The economic cycle always wins. As for me, I'll keep sharing my timely information about investing to my RC newsletter subscribers.

DYOR and Invest wisely.