Top 10 Bullish Crypto Trading Indicators

This guide explores the top 10 bullish crypto indicators, explaining how each one can be calculated and interpreted — and how they can enhance the crypto trading experience.

Key Takeaways:

• Learn about the top 10 bullish crypto indicators, including moving averages, MACD, and RSI.
• Understand how each indicator can be calculated and interpreted to enhance the trading experience.
• Discover how to trade crypto on the Crypto.com Exchange.

Introduction

In the world of cryptocurrency trading, it is crucial to have a solid understanding of various bullish indicators in order to make informed decisions. These indicators can help traders anticipate when crypto prices could potentially rise, allowing them to capitalise on potential profits.

In this guide, we explore the top 10 bullish crypto indicators and how they can be calculated and interpreted. With this knowledge, traders can enhance their trading experience on the Crypto.com Exchange and make more informed decisions.

Learn the basics of crypto technical analysis here.

1. Moving Averages (MA)

Moving averages are a popular trading indicator that helps traders identify directional trends and potential turning points. There are two main types of moving averages: simple moving average (SMA) and exponential moving average (EMA).

Simple Moving Average (SMA)

SMA is the average price of a crypto asset over a specific period, such as 20, 50, or 200 days. It is a lagging indicator, meaning it follows the trend and provides delayed feedback after the price movement has occurred. A rising SMA can signal a bullish trend (as can an upwards crossing of a longer-term SMA by a shorter-term SMA), while a falling SMA may indicate a bearish trend (as can a downwards crossing of a longer-term SMA by a shorter-term SMA).

Exponential Moving Average (EMA)

EMA is a type of moving average that gives more weight to recent price data, making it more responsive to price changes. Like with SMA, a rising EMA signals a bullish trend, while a falling EMA indicates a bearish trend.

2. Moving Average Convergence/Divergence (MACD)

MACD is a momentum indicator that shows the relationship between two moving averages of prices. It is typically calculated by subtracting the 26-day EMA from the 12-day EMA. A positive MACD indicates bullish momentum, while a negative MACD signals bearish momentum. 

Additionally, when the MACD line crosses above the signal line (which is typically calculated as the 9-day EMA of the MACD line), it generates a bullish trading signal; when it crosses below the signal line, it indicates a bearish trading signal.

3. Relative Strength Index (RSI)

RSI is a momentum indicator that measures the speed and magnitude of price changes. It ranges from 0 to 100 and is used to identify potential overbought or oversold conditions. An RSI value above 70 typically indicates that a crypto asset is overbought and may be due for a price correction, while a value below 30 suggests that the asset is oversold and could be poised for a price increase.

4. Bollinger Bands

Bollinger bands are a volatility indicator that consists of three lines: the middle line (20-day SMA), upper band, and lower band. The upper and lower bands are typically set two standard deviations away from the middle line. When the bands are wide, this indicates high volatility, while narrow bands signal low volatility. A price touching the upper band may indicate an overbought condition, while a price touching the lower band may signal an oversold condition.

5. Stochastic Oscillator

The stochastic oscillator is a momentum indicator that compares a crypto asset’s closing price to its price range over a specific period. It ranges from 0 to 100, with values above 80 indicating overbought conditions and values below 20 signifying oversold conditions. Like the RSI, the stochastic oscillator can generate bullish and bearish trading signals based on its position within the overbought or oversold zones.

6. On-Balance Volume (OBV)

OBV is a momentum indicator that uses trading volume flow to predict changes in price. It is calculated by adding or subtracting the latest trading volume from a running total, depending on whether the price increased or decreased. A rising OBV suggests that buying pressure is high and prices may continue to rise, while a falling OBV indicates selling pressure and potential price decreases.

7. Crypto Fear and Greed Index

A Crypto Fear and Greed Index is a sentiment-based indicator that attempts to capture the emotions of traders in the crypto market. Such an index typically has values that range from 0 to 100, with those closer to 0 representing extreme fear, while values closer to 100 indicate extreme greed. Extreme fear may signal a buying opportunity, while extreme greed can suggest a potential price correction.

Learn all about the Fear and Greed Index.

8. Bitcoin Dominance

Bitcoin dominance is a metric that measures the market capitalisation of Bitcoin relative to the total market capitalisation of all cryptocurrencies. A rising Bitcoin dominance indicates that Bitcoin is outperforming altcoins, while a falling Bitcoin dominance suggests that altcoins are gaining market share. 

The typical interpretation is that Bitcoin dominance tends to decrease during bull markets because users are generally more risk-seeking and speculative, causing them to deploy their capital into altcoins. Conversely, users may choose to allocate to Bitcoin during a bear market, looking towards Bitcoin as a relative safe haven, thus increasing Bitcoin dominance.

Get the 101 on Bitcoin dominance.

9. Bitcoin Hashrate

Although not a traditional trading indicator, the Bitcoin hashrate can provide insight into the health of the Bitcoin network. Hashrate is the measure of the computational power in a Proof of Work (PoW) cryptocurrency network. 

A rising hashrate suggests that more miners are contributing to the network, increasing its security and stability. Conversely, a falling hashrate can signal potential network vulnerabilities and may affect trader confidence in Bitcoin.

10. Social Media and Google Trends

Social media activity and internet search traffic can provide valuable insights into the sentiment of the crypto market. Platforms like Twitter and Reddit can reveal the popularity of specific cryptocurrencies and projects, while Google Trends can help gauge overall interest in the crypto market. 

A sudden surge in social media mentions or search volume may indicate rising interest in a particular cryptocurrency and potentially an impending price increase.

Learn how to DYOR.

How to Trade Crypto on the Crypto.com Exchange

The Crypto.com Exchange offers a user-friendly platform for trading various cryptocurrencies. To get started, simply sign up for an account, complete the verification process, and deposit funds into the account. 

Once an account is funded, users can begin trading by selecting their desired trading pair and placing buy or sell orders based on their analysis and with the help of the bullish crypto indicators described above.

Read our overview of the Crypto.com Exchange to help get started.

Conclusion

Understanding and utilising the top 10 bullish crypto indicators can greatly enhance a user’s trading experience and help to make more informed decisions when navigating the crypto market. By calculating and interpreting these indicators, traders can better anticipate when crypto prices could potentially rise and take advantage of opportunities. 

To get started with trading crypto, sign up for the Crypto.com Exchange today.

Due Diligence and Do Your Own Research

All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.

Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.