The cryptography market has become green during the first week of May, but skepticism remains strong. Some people believe that current signals show signs of a larger bullish cycle, especially since Bitcoin breaks a key psychological threshold.
However, others warn that temporary factors can distort indicators. This article uses data on the chain and historic models to explore both sides of the argument.
Is the cryptography market about to see a bull?
The cryptocurrency’s Bulp October market cycle indicator, designed to identify the bullish and lowering phases on the cryptography market, recently shown positive signs.
Since February 24, 2024, the indicator has always reported a lower market. However, in recent days, he has started to show signs of a potential reversal.
However, the signal remains weak and unclear. In mid-2024, this same indicator caused misleading predictions. The market has moved to the side for a long time without forming a clear trend.
Analyst Burakkesmeci added observations using the 30 -day and 365 days (30DMA and 365DMA) mobile averages to clarify the bullish potential.
“More importantly, the 30DMA bull – a short -term mobile average – turned upwards. If this metric crosses the 365DMA bull, the story suggests that we could again see parabolic gatherings in Bitcoin”, predicted Burakkesmeci.
However, analyst Darkfost offered a more cautious perspective when examining the growth rate indicator. This indicator assesses the state of the Bitcoin – Bull or BEAR – by comparing market capitalization and the Bitcoin Ceiling.
He noted that the indicator returns to a bullish territory, coinciding with Bitcoin ($ BTC) recovering the $ 100,000 bar.
Instead of predicting the end of the bear market and the start of a Bull Run, Darkfost warned that this could be a false recovery triggered by special conditions.
These special conditions include Donald Trump to sign a trade agreement with the United Kingdom, which has helped to mitigate concerns about pricing shocks. Meanwhile, the federal reserve has maintained a cautious position and maintained the unchanged interest rates.
“It is possible that the traditional market dynamics continue to be disrupted for a certain time, which makes the current environment particularly difficult to read,” said Darkfost.
Another notable data point is the Crypto Fear & Greed index. It went to 73, entering the “greed” area – its highest level in two months. This suggests that the feeling of investors goes from caution to excitement.
However, high levels of “greed” or even “extreme greed” often serve as warning signs. Historically, these levels have preceded major price corrections.
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