9 Signs that Cryptocurrencies May Be Bouncing Back

When people start massively buying, the price will go up. Therefore, your only chance to buy low is to learn how to pick up the early signs of growth. This is a skill that many investors want to acquire, but they don’t really want to put in the effort and break the skill down to see what else it entails.

It’s no secret that cryptocurrencies aren’t doing as well this year as they did in 2021. This has led to many people writing them off completely. However, many crypto enthusiasts feel it’s not likely to last, and here’s how you’ll recognize that cryptocurrencies may be bouncing back faster than some people expect.

1. The price of major tokens going up

The increasing price of major tokens is like an alarm for many smaller tokens to start increasing their values. You see, it’s all about public perception, and people seldom even pay attention to these smaller tokens until they see BTC and ETH rising. Then, they start going through presales and ICOs to see if they can find the next Bitcoin.

So, why is this relevant today?

Well, first of all, BTC has exploded to $35K, and while some believe that correction might be imminent, others are not so sure about it. Either way, once again, it has ensured that all eyes are on crypto. Just remember, as an investor, you’re always looking for early signs.

2. Increased trading volume

An increased trading volume leads to increased price volatility; however, this volatility can go in your favor. This is how all those crypto millionaires were made.

You definitely won’t be the first one to notice something is changing. If you’re lucky enough, you’ll notice that there’s an increased trading volume before the majority of others do. You won’t be the first, but you don’t have to. Just notice it soon enough, and this will be good enough.

One of the ways to do so is to keep track of numbers on trading platforms and exchanges. To notice a trend, you should either make notes (and track movements over time) or get a reliable tool.

3. New projects

When there’s growth, there are many new projects. You see, the investors are not the only group whose numbers swell when there is an upward movement in the market. An expanding demand will always increase supply, meaning there will be many new coins, ICOs, and presales.

If you want to find cryptos with the highest potential, you must find them early. Just think about it: some people bought BTC at $10 or $100 each. Some people bought it for cents instead of dollars. Now, imagine if you could go back in time and do the same. Well, while you can’t travel in time, what you can do is find "the next BTC" and invest in time.

4. Greater adoption

The value of cryptocurrencies will be determined by how widely they are used and accepted. So, one of the things that you’re looking for is high adoption rates. When more and more businesses start accepting crypto payments and more enterprises compensate their employees in crypto, the demand for these tokens will grow and, by default, the market value.

However, these movements are often subtle. They are also slowed down due to regulatory issues of all sorts. After all, taxing crypto income is still a bit of a challenge, and many people use it to avoid their financial obligations. As crypto becomes more transparent and better regulated, this is bound to change.

5. Increased network activity

As a crypto investor, you’re probably following quite a few people who trade in crypto. Some people are copy trading, but even those who aren’t usually follow some crypto-related influencers and people of influence in these fields. Once the market growth starts, you’ll see increased activity from all these people and across all of these channels.

This is the way of life; when the hype dies down, people go quiet. It’s not the same volume of discussion. You would assume that the amount of bragging and complaining would be the same in opposite scenarios, but this assumption would be wrong.

Community activity indicates that the field is expanding, and this might be the right time for you to invest.

6. Positive news

The value of cryptocurrencies is often dictated by public interest, and most of the public isn’t doing in-depth research or elaborate financial projections. Instead, they’re casually reading the news and looking for anything optimistic-sounding, even remotely related to cryptocurrency.

This one is simple: when all the news around crypto is scandals and lawsuits (like with the FTX last year), chances are that the entire field is moving downward. At the same time, it will be impossible not to tell when the public perception turns 180 degrees. All of a sudden, all the speculations around when BTC will breach $100K will be back on the menu, and all that you’ll see is the crypto-related investment FOMO.

7. Positive regulations (or any kind of regulations)

One of the things that’s putting the brakes on the rapid growth of crypto is the lack of regulation. Even a bad regulation can be a positive trend, since it’s concrete. Speculations regarding the future of crypto regulation are causing so much anxiety among investors.

However, regulations that increase security and transparency will always inspire confidence among potential investors (and the general public).

So, you need to start by looking for positive regulation; if you can’t find it, look for regulation of any kind. Sometimes, bad news (but not as bad as people have feared) can be second-best. While this sign may not be as clear, it’s still worth watching. If it’s followed by some other signs from this list, it will be far more indicative.

8. Technological development

Cryptocurrencies are sometimes closely tied to a specific technology. For instance, some AI coins are gatekeeping an essential AI service. Naturally, due to this concept, the more popular this AI service becomes, and the faster the development of the tools takes place, the better.

AI is a technology that’s been discussed for a while but has only exploded during the last year. Before that, AI coins weren’t worth mentioning, let alone a serious investment consideration. This is why it’s so important to keep track of new technologies. Generally speaking, utility coins are always closely tied to these tech trends.

9. Institutional investments

Institutions are doing more research, and people usually make their decisions with experience in this respective field. They’re also more likely to engage in in-depth analysis and study more charts and tokens than individual users. Therefore, once you notice an increased institutional investment rate, this is one of the safest indicators that growth has already begun.

We’re talking about institutions like hedge, venture capital, asset management, and pension funds. These are all governed by financial experts who don’t make investments lightly. Can they still be wrong? Sure! Still, they’re a much safer bet than your regular crypto influencer.

Learning how to recognize early signs of growth will help you figure out when to buy

An instinct is nothing more than a subconscious pattern recognition. It’s not some mystical power you either have or don’t have. Still, before you start recognizing early patterns subconsciously, it might be a good idea to learn a few rules the old-fashioned way. Now, you know exactly what you’re looking for.

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