{"id":538633,"date":"2023-01-10T22:46:09","date_gmt":"2023-01-10T19:46:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/5-signs-that-an-altcoin-bull-run-could-be-underway\/"},"modified":"2023-01-10T22:46:09","modified_gmt":"2023-01-10T19:46:09","slug":"5-signs-that-an-altcoin-bull-run-could-be-underway","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/","title":{"rendered":"# 5 signs that an altcoin bull run could be underway"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a240a15d5233\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a240a15d5233\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/#%E2%80%9D_5_signs_that_an_altcoin_bull_run_could_be_underway_%E2%80%9C\" >&#8221; 5 signs that an altcoin bull run could be underway &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/#Job_market_data_revives_the_hope_of_a_soft_landing\" >Job market data revives the hope of a soft landing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/#Traders_hunt_for_perpetual_swaps_with_negative_funding_rates\" >Traders hunt for perpetual swaps with negative funding rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/#Meme_coins_pump_then_dump\" >Meme coins pump, then dump<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/#Positive_technical_breakout\" >Positive technical breakout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-that-an-altcoin-bull-run-could-be-underway\/#Historical_trends_and_positive_sentiment_spike\" >Historical trends and positive sentiment spike<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_5_signs_that_an_altcoin_bull_run_could_be_underway_%E2%80%9C\"><\/span>&#8221; 5 signs that an altcoin bull run could be underway &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-6ed77c39>While 2022 ended on a grim note with macro headwinds providing little hope of a revival in 2023, the start of a new year has surprised bears with a surge in Bitcoin (BTC), Ether (ETH) and altcoin prices. The period of sparse volatility in the crypto market <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be ending with a breakout on the upside.<\/p>\n<p>The increase has been particularly striking in some altcoins such as Lido (LIDO), Solana (SOL), and Cardano (ADA). The primary factors promoting the spike in these coins are the upcoming Ethereum Shanghai update (for LIDO) and the negative funding rate in the futures market, especially for SOL. The negative rates implies that most traders are holding short positions, giving an opportunity for whale buyers to run their stop losses. Funding rates for some other tokens remain exposed to a short squeeze.<\/p>\n<p>Moreover, the new year has also seen the re-emergence of the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/glossary\/degen\">degen<\/a> gambling that had taken a back seat after the FTX collapse in November 2022. A meme coin price surge is evidence of the residual degen spirit. Technically, the total market capitalization of altcoins has surpassed a key technical resistance level as bullish momentum builds.<\/p>\n<p>While the sustainability of the bull run is questionable due to the broader trend remaining bearish, the fledgling uptrend could still bring some pain for late sellers. The five primary factors influencing altcoin prices are:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Job_market_data_revives_the_hope_of_a_soft_landing\"><\/span>Job market data revives the hope of a soft landing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Defying the Dow\u2019s estimate for 200,000 nonfarm payrolls and market expectations of a slowdown, labor market data from December 2022 showed a 230,000 or 0.2% increase in employment. <\/p>\n<p>A strong jobs market goes against the prevalent recession claims and acts as a catalyst for a risk-on rally. The consumer inflation price (CPI) reading for December 2022 coming out on Jan. 12 will be instrumental in either building on the newfound bullish sentiment or returning to negative sentiments. <\/p>\n<p>If inflation continued its downtrend, with December&#8217;s CPI print below 7.7%, then the market&#8217;s confidence in a soft-landing could increase. However, if inflation rose in December, then the chances of a higher rate hike in the U.S. Federal Reserve meeting toward the end of January risks a steep correction.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Traders_hunt_for_perpetual_swaps_with_negative_funding_rates\"><\/span>Traders hunt for perpetual swaps with negative funding rates <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the spot trading volume and liquidity on cryptocurrency exchanges dried up toward the year-end, especially during the holiday season, futures markets gained more influence in moving the prices. A contrarian price reaction against a crowded trade position is highly likely.<\/p>\n<p>Solana&#8217;s latest surge in prices is clear evidence of short-squeeze driving prices. Over the weekend, $200 million in SOL shorts were liquidated as its price surged over 27% from Jan. 6 low of $13. According to independent <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/krugermacro\/status\/1612312815167209472\">market analyst<\/a> Alex Kurger, \u201cSOL still has room to go but the outperformance phase is mostly behind.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/424ab45e-920a-4a5f-9f9c-ee31970c4d8b.png\"><figcaption style=\"text-align: center;\"><em>Funding rate for SOL perpetual swaps. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>While Solana\u2019s pump might be close to over, the majority of traders are still net short on numerous altcoins like Apecoin (APE), Tron (TRX), Bitcoin Cash (BCH), and Gala <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>s (GALA). This provides an opportunity for buyers to push the price up and hunt the stop-loss liquidity of perpetual swap sellers.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/6a2c8d41-cd8f-485c-84ba-726016e457d4.png\"><figcaption style=\"text-align: center;\"><em>Funding rate for altcoins across crypto exchanges. Source: Coinglass<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Meme_coins_pump_then_dump\"><\/span>Meme coins pump, then dump<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the first week of January 2023, a Solana-based meme coin named BONK experienced a whooping 25x surge. The rise symbolized the degenerate gambling spirit that was prevalent during the 2021 to 2022 bull run. Bear markets, on the other hand, tend to promote caution among traders. <\/p>\n<p>Despite BONK\u2019s eventual price collapse, the successful pump-and-dump playout of meme coins like it suggest that some traders are still indulging in high-risk plays.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/68b8deca-72a9-44bb-9318-bb624d961eb6.png\"><figcaption style=\"text-align: center;\"><em>BONK price chart. Source: CoinGecko<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Positive_technical_breakout\"><\/span>Positive technical breakout<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The altcoin market capitalization broke above the 50-day exponential moving average (EMA) at $465 billion. Buyers will likely target the 100-day EMA at $563 billion\u2014an expected average 20% gain across the tokens. Technical traders would look to tap these key levels before reversal begins.<\/p>\n<p>The relative strength indicator (RSI) for altcoin market capitalization also moved into bullish territory, increasing above the 60-point resistance. Furthermore, if buyers build support above the 50-day EMA with positive volumes, the short-term uptrend could extend toward the end of Q1 2023.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/cca4afef-bf59-4adf-9343-edb56ed06939.png\"><figcaption style=\"text-align: center;\"><em>Total market capitalization of altcoin (excluding Bitcoin). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Historical_trends_and_positive_sentiment_spike\"><\/span>Historical trends and positive sentiment spike<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The sustainability of the bullish altcoin run is questionable, especially since the underlying trend remains bearish. It\u2019s difficult to identify the fundamental catalyst supporting this bull run, and Bitcoin\u2019s price trades below the resistance between $18,200 and $19,000. Thus, the uptrend will likely fade as buyers get exhausted.<\/p>\n<p>If we look at previous crypto cycles, altcoins outperformed Bitcoin in a bull run, and the following cooldown period saw a cross-over with Bitcoin leading the crypto market gains. <\/p>\n<p>The recent parabolic run of 2021 played out similarly, with altcoins outperforming Bitcoin. However, the correction period hasn\u2019t seen a wipeout of the altcoin market relative to Bitcoin. <\/p>\n<p>Both altcoin market capitalization and Bitcoin\u2019s price have lost 75% of their value from the peak, as opposed to altcoin losses surpassing Bitcoin.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/12b1cba2-b0ae-4d6f-b0f2-97d21ed1ffd9.png\"><figcaption style=\"text-align: center;\"><em>Altcoins outperform Bitcoin during bull markets. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>An exception to the above rule can be due to Ether\u2019s increasing dominance in the market. Ethereum has maintained its market dominance around 20% with technical breakthroughs such as the shift to a energy-friendly proof-of-stake mechanism and reduced inflation supporting its price strongly despite the negative trend. Still, a deeper correction in the broader altcoin market capitalization cannot be ruled out.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/37866838-c4ec-47a1-a64e-85b1fc635fcb.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin (orange) Ethereum (blue) dominance over the crypto market. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Lately, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> circles have witnessed a revival of positive sentiment. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/santiment.net\/\">Santiment<\/a> data shows that the social media mentions of keywords like \u201cbuy the dip\u201d and \u201cbottom\u201d spiked on platforms like Twitter, Reddit, and Telegram. Usually, a positive sentiment spike is a top indicator suggesting a reversal of the bullish price trend. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/f154cc7f-7fc4-4673-86d7-b322a005ff8a.png\"><figcaption style=\"text-align: center;\"><em>Social media volume for \u201cbuy the dip\u201d and \u201cbottom\u201d key words. Source: Santiment<\/em><\/figcaption><\/figure>\n<p>One of the first hurdles will be supporting the price after a wipeout of short orders. Being one of the first tokens to surge, Solana and Cardano could provide clues that point toward the end of the uptrend. <\/p>\n<p>If the price of SOL breaks below support at $14.33 with a simultaneous drop below $0.30 for ADA, it could be a warning sign of the bull\u2019s exhaustion.<\/p>\n<p>At the same time, tokens like LIDO that benefit from the liquid staking derivative narrative could continue to rise until Ethereum core developers implement the Shanghai upgrade. Macro market movers such as the CPI print and Bitcoin\u2019s price action will also play a crucial role in sustaining an altcoin bull run.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The period of sparse volatility&#8230;<\/p>\n","protected":false},"author":1,"featured_media":538634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/d6c4c588-90f3-44be-983f-0fb05e01f8b4.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,74863,74938,74939,92498,73785],"class_list":["post-538633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-ethereum-price","tag-market-analysis","tag-solana","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/538633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=538633"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/538633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/538634"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=538633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=538633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=538633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}