Trading Crash Course | How to Position for the Next Bull Run

2022-12-21, 07:00

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🔹 A Crypto bull run is a prolonged period, usually months or longer, when prices rise, and market confidence is high.

🔹 During this market phase, most buyers are buying, and demand exceeds supply translating into more gains for traders and investors.

🔹 Some examples of bull runs in crypto history include the first [Bitcoin](https://www.gate.io/trade/BTC_USDT) bull run of 2013, the euphoric bull run of 2017, and the massive bull run of 2020 to 2021.

🔹 Keeping a tab on crypto news, new and popular projects, price trends and, finding a reliable exchange, learning to identify scams are ways to position for the next bull run.

## Introduction

Bear markets have historically been difficult for both experienced and novice investors, with little to no gains realized. During bear markets, many investors suffer significant financial losses as they attempt to trade despite the unpredictability of recovering from failures. It's always challenging for newcomers entering the tail end of a crypto bull run to witness the crash of crypto prices. Even for veterans of the previous crypto bear market who are used to the volatility, watching life-changing investments tank into the cellar is not fun.

While the current bear market, exacerbated by the Terra crash and, more recently, the bankruptcy of FFX, created the opportunity to improve the portfolio in crypto and NFTs, the market is on the lookout for the next uptrend. Nobody knows when the next bull market will begin, but we can speculate on which trends will fuel it. 
 
## What is a Crypto Bull Run?
A crypto bull market, also known as a crypto bull run, is a prolonged period, usually months or longer, when prices rise, and market confidence is high. During this market phase, most buyers are buying, and demand exceeds supply translating into more gains for traders and investors.

Investors who hold that prices will rise over time are known as "bulls," and those who believe that prices will fall over time are known as "bears."

A Crypto Bull Run has the potential to dramatically alter the state of crypto markets, affecting the price of specific assets. In late 2021, the markets experienced a Bull Run, with the price of [Bitcoin](https://www.gate.io/trade/BTC_USDT) remaining high into early 2022.

Before looking at how to position for the next bull run, let's take hindsight at the bull run in crypto history. When we understand where we are coming from, we can prepare well for where we are going.
 
## Bull Run in Crypto History
In 2013, the first and still most popular digital coin grew slowly and never reached more than $122. The policy of the Cyprus government in the banking sector saw many people put their money into [Bitcoin](https://www.gate.io/trade/BTC_USDT), which began its first significant bull run toward the end of the year. Over one year, [Bitcoin](https://www.gate.io/trade/BTC_USDT) rose from $199.97 to $1,129. Another factor responsible for the bull run is the demand by the Chinese middle class for cryptocurrencies because of the lack of other alternatives.

![](https://gimg2.gateimg.com/image/article/1671605522111.png)<center/>Coinmarketcap</center>

2017 was the year when average people bought and sold cryptocurrency in large numbers for the first time. It was the year of initial coin offerings and the get-rich-quick craze. Along with the retail investors, institutions, however, also got interested. Riding the hype, pension plans and investment trusts all tried their hand at cryptocurrency.

During the autumn of 2017, [Bitcoin](https://www.gate.io/trade/BTC_USDT) rose from $4,610 to $19,497.Ethereum witnessed its most extensive bull run around this period, with the price rising from 6.8156 USD to 398.4308 USD, resulting in a return of 5745.9 %.

People began looking for additional passive income sources in 2020 as employment fell due to the pandemic. And DeFi caught the attention of many investors looking to farm, stake, and lend their cryptocurrency due to its dynamic ecosystem. From September 2020, the total-value-locked bubble grew larger and larger, eventually reaching the $ 90 billion mark in November 2021. The [Bitcoin price](https://www.gate.io/trade/BTC_USDT) touched a record level of $60k in the spring of 2021. It saw the floor at $32k after a short dip from May to the end of the summer. Afterwards, the growth was renewed, hitting the second peak of $68k in November 2021. Many projects blossomed during this period, especially NFTs selling for a million dollars.
 
## When is the next crypto bull run expected?
The next crypto bull run is not a question of if it will happen but of when. The fundamental premise is that markets move in cycles, and understanding how markets work is what keeps the bull warm during the coldest (crypto) winter months. Although it is difficult to predict when the next bull run will occur, observers have expressed varying yet close opinions on it. According to one school of thought, the return to a bull market takes four years to develop; therefore, a recovery in 2024 is possible due to the maturation of recent monetary policy and the easing of economic headwinds, which may allow for lower interest rates and the reintroduction of funding. This school of thought points out four factors that may trigger the next bull run. These factors include the taming of global inflation, renewed confidence in the long-term viability of DeFi business models, the migration of at least 50 million crypto holders from the world of centralized exchanges to the world of decentralized applications, and, potentially, the next [Bitcoin](https://www.gate.io/trade/BTC_USDT) change (i.e. halving).

Another view contends that the next bull run should be expected earlier than 2024. This view, which was expressed by Hunter Horsley, the CEO of Bitwise, holds that the primary cryptocurrency has gone through four-year cycles, with bull runs with increasing momentum always following bear markets. Based on that information, he predicted that the asset would begin a new price rally in 2023. He observed that the market was down nearly 60% in 2014 and more than 70% in 2018. Since the market is down around 60% this year, 2022, he asserted we should start a new cycle next year if the market continues on its current trajectory.

Since the next bull run is only a question of when it is never too early to start planning for it.
 
## How to Position for the Next Bull Run
**1. Keep Current With Crypto News**
Trading and investing in cryptocurrency need time, patience, knowledge, and research. Staying current with the latest information is critical to your success and staying ahead of the curve for the next bull run. If you were in the cryptocurrency market in 2017 or 2018, you know that news is everything. People seek explanations for market movements the moment they begin. More often than not, there is a logical explanation for the price movement pattern. If you receive your news even a minute later than most of the market, you have already lost your chance to make significant profits. Twitter and Reddit are excellent places for staying current on any investing topic, especially cryptocurrency. Some of the best cryptocurrency day trading advice from top investors worldwide can be found in these spaces.

**2. Learn about New and Popular Projects**
You will want to do preemptive research once your reliable news sources are set up. This research is significant because you must be ahead of the game to make confident trades and orders when the market begins to move.

If you want to make money trading or investing in cryptocurrency, research the top projects and some of the new and upcoming ICOs, and plan for which projects to keep an eye on.

**3. Monitor Cryptocurrency Prices and Trends**
It would help if you found sites such as Coinmarketcap where you can quickly and easily identify price movements. Much has happened in the crypto market, and it should be sufficient for aligning and implementing the right strategy, eventually increasing your chances of profit. Reviewing previous data price movements and other essential factors makes you gain a market advantage against the next bull run.

**4. Find a reliable exchange.**
If you still need to get a trustworthy exchange where you can store your cryptocurrency and make timely trades, you need to find one immediately. When a bull market begins, timing is everything. The cryptocurrency's price will likely skyrocket at some point, and you must be prepared to sell within hours. Otherwise, you risk underestimating your profits.

**5. Learn to identify scams and avoid them**
 Every bull cycle comes with tremendous amounts of scams and platforms promising enormous returns for simply buying in or giving them your money in exchange for passive income. These are almost always based on fraudulent activities, trading bots, excessive market leverage in margin accounts, or pyramid schemes. The con artists will want to ride on the wave of improved consumer and business confidence to rug-pull unsuspecting individuals. You must understand the red flags and how to avoid these schemes before the next bull run.
 
## Conclusion
The following crypto bull run won't occur by accident. There is a confluence of factors shaping market sentiment into a bull run. The economic crisis in Cyprus in 2013 and the one that resulted from COVID-19 in 2020 showed that when traditional systems fail, people turn to non-traditional forms of investment. A political regime that restricts all foreign investment, as China did in 2013, may also encourage the middle-class population to adopt crypto that has no borders.

Furthermore, institutions could pump money into crypto, as stated in 2017, with [Bitcoin](https://www.gate.io/trade/BTC_USDT) halving. In the final analysis, those who position for the next bull run will make the best of it.
 
Author -** M. Olatunji**, Gate.io Researcher
*This article represents only the views of the observers and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted, provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.