Crypto expert Bull Theory hinted at a Russell 2000 signal, which has consistently triggered all major Bitcoin Bull Market. This signal would have triggered again, signaling that another major rise could be on the horizon.
Russell 2000 signal points to another Bitcoin bull market
In a MessageBull Theory said the Russell 2000 just gave the same signal that sparked every major Bitcoin bull market in the past. The expert further revealed that this index broke out after a 64-month consolidation, which is its longest base in over 20 years. This is important because of how a bull run followed each escape.
The expert highlighted the fourth quarters of 2012, 2016 and 2020, when the Russell broke out, after which Bitcoin bull markets followed. Today, the Russell broke out again after 64 months, 17 months longer than the consolidation preceding the three previous breakouts. Bull Theory explained that the Russell 2000 is a leading indicator of liquidity and risk appetite because when small caps rally, it means capital is flowing into risky assets such as crypto.
Bull Theory also noted that the duration of this consolidation is important, as it means that liquidity has been constrained for an unusually long period of time. However, this breakout indicates that conditions have changed significantly. Furthermore, the expert stated that the ISM Manufacturing Index confirms liquidity expansion, as the Bitcoin cycle has historically started 4-5 months after PMI lows.
As such, Bull Theory believes that small caps and the PMI send the same message: liquidity is increasing and risk appetite is returning, meaning the setup for a new Bitcoin bull market is here. The expert added that the next bull run could be more powerful given the depth of consolidation. He cautioned that past performance is never a guarantee of future results, but that the Russell 2000 index has a strong track record of announcing major changes in the liquidity cycle.
The bear market is over if this happens
Speaking at Consensus ConferenceBitmine President Tom Lee said the bear market would definitely be over if Bitcoin closed this month above $76,000. He explained that BTC has never closed three consecutive months in the green before. bear marketsthis is why the crypto winter could be over.
BTC notably closed March and April in the green despite the ongoing war between the United States and Iran, signaling that the Bitcoin bull market may be back. However, analysts such as Doctor Profit warned that the recent rally is just a bull trap, with the leading crypto likely to see another massive decline.
At the time of writing, Bitcoin price is trading at around $79,600, down over the past 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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