Key Takeaways
- As the crypto market experiences significant volatility, traders and investors looking to protect their gains must recognize the signs of a potential downturn.
- If you are seeing substantial gains, selling some and reclaiming your initial investment is a smart strategy.
- If crypto starts to dominate mainstream attention and attract casual interest, it could be a sign that the bull market is reaching its end, as these conditions often precede a market correction.
Alright, crypto enthusiasts, let’s discuss something that every seasoned investor should know—the signs of when a bull market is winding down.
The thing about bull markets is that they don’t last forever. They can go on for months, even years, but at some point, the party’s going to end. And when it does, you want to be prepared.
So, what should you look out for? Well, as much as we all love a good bull run, it’s just as important to know when to start thinking about taking some profits off the table. After all, you want to get your initial investment out and let the rest ride on house money, right?
In this article, I’m going to break down the top 7 signs that the crypto bull market is coming to a close. When these indicators start popping up, you might want to think about taking a step back, reassessing your portfolio, and perhaps locking in some gains before things take a turn.
When You Made Profits, Get Your Initial Investment Out
One of the smartest moves in any bull market — and crypto is no different — is to get your initial investment out.
Let’s face it: if you have made some solid profits, you do not want to be stuck holding onto the moonshot while the market corrects. The key is to sell a portion of your holdings when you are up significantly. If you are sitting on a big winner, pull out your original investment so that the rest is playing with house money. That way, no matter what happens next, you have already secured your initial investment, and you are not as exposed to the risk of a sudden downturn.
This is an essential strategy. It lets you sleep easy at night knowing that no matter what the market does, you have already made your return. And if the market keeps going up? Well, you have got the upside still riding, and you can always reevaluate later.
7 Signs That The Crypto Bull Market Is Ending
You Gain A Lot Of Haters
This one’s a classic. When the market is really starting to get overheated, and people are getting irrationally bullish, you’ll notice something strange — more and more people will start to hate on you for making money. “It’s a bubble!” they’ll say. “You’re just lucky!” they’ll yell.
The truth is, it’s not that they hate you — they’re just terrified of missing out and watching the market collapse. These are the people who didn’t get in early, didn’t have the conviction, or didn’t take profits when they should have.
When you start getting haters, it’s a sign that the market has gone mainstream. And once the mainstream gets involved, the end is usually near.
Overbought Indicators
You’ve probably seen this one a hundred times — indicators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) going into overbought territory.
Simply put, when these indicators show extreme levels (anything above 70 on the RSI), it’s a flashing red light saying, “Hey, this market is running hot!” It doesn’t necessarily mean that the market is about to crash, but it does suggest that things are overheated and a correction is on the horizon.
As the saying goes, what goes up must come down. If we don’t see a healthy pullback or consolidation soon, we could be staring at a bigger dip when the bubble pops.
Market Sentiment Is Greedy
Ah, the greed index. There’s a reason why they call it “the fear and greed index.” When everyone and their grandmother is talking about crypto and buying into the hype, you know that market sentiment is through the roof — and not in a good way.
During the tail end of a bull run, you start hearing things like, “Bitcoin is going to $1 million!” or “Ethereum is going to flip the world on its head!” The market gets flooded with irrational optimism, and this is often the telltale sign of a market that’s reaching its peak.
Remember: when people are all over social media posting “to the moon” memes and celebrating 100x gains, it’s time to start thinking about taking profits.
Social Media Is Flooded With Pictures Of Sports Cars And Rolexes
Ah, yes — the inevitable showing off of lavish wealth. You know the drill. The bull market hits a fever pitch and suddenly, social media is flooded with people posting pictures of their brand-new sports cars, their shiny Rolexes, and their luxury vacation spots.
Now, don’t get me wrong — if you’ve made some gains and you’re living it up, that’s awesome! But when everyone from your dentist to your cousin’s roommate is showing off their “crypto millionaire” status, it’s a strong signal that the market is in the final stages of a mania. When the euphoria hits this level, the inevitable bust is usually right around the corner.
Laser Eyes
You know what I’m talking about — the laser eyes. If you see half the Twitter and Instagram profiles suddenly switching their profile pictures to a laser-eyed version of themselves, you might want to brace for impact.
Laser eyes are often a symbol of peak bullishness in the crypto space. Everyone, from average retail investors to even celebrities might get in on the trend, showing their “support” for Bitcoin or other crypto projects.
While fun and meme-worthy, this is often a sign that the speculative frenzy is at its most feverish. When the laser-eyed profiles start popping up, the market is probably nearing its top.
Getting Phone Calls From People You Haven’t Talked To In A While
Here’s a big one. When the market is in full bull mode, you’ll get those random messages, texts, or — even better — phone calls from old friends, family members, or even that one guy from high school who you never communicated with in a while. They’ll ask you, “Hey, what’s this Bitcoin thing? Is it too late to buy?”
It’s always the same story. When the market goes mainstream and gets into the hands of people who have no idea what they’re doing, that’s often a sign that the bull run is nearing its end. These are the late adopters who are hopping in because they don’t want to miss out, and they usually come in right when things are about to turn.
Crypto Exchanges And Apps Take The Top 10 In The Apple App Store And Google Play Store
When the public gets truly obsessed with crypto, the apps and exchanges start climbing the app store rankings. If you check the top 10 in the Apple App Store or Google Play Store and see that nearly every crypto-related app has moved into the top spots, then you know that retail mania is in full swing.
This is a clear sign that adoption has reached a tipping point. Exchanges like Coinbase, Binance, and Kraken suddenly dominate the charts, and everyone from your local barista to your Uber driver is signing up for an account. While increased adoption is a good thing in the long run, it’s often a sign that the party might be nearing its end for the current cycle.
Final Thoughts
Look, I’m not saying that the crypto bull market is over right now. But the signs are there. The market goes through cycles, and when you start seeing these indicators pop up, it’s time to think carefully about your next moves. Take profits, protect your investments, and not let FOMO or greed cloud your judgment.
Lessons that have been learned and lessons learned the hard way are not easy to forget, so take out your pen and paper and learn from the mistakes of others so you don’t have to repeat them yourself. Thanks for reading!
