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📈 Who's the Winner in This Bull Run?

📈 Who's the Winner in This Bull Run?

BTC = "digital gold"

Jane Lee
December 08, 2024

As the crypto bull run surges, many are winning, but also wondering who’s really profiting. While traders ride waves of volatility, the real winners are... Scroll down for the answer.

Here’s what we got for you today:

🚀 How to Trade With 5-Minute Candlestick Patterns …
🤑 Who’s cashing in on the crypto bull run?
⭐ Top Highlight in Crypto Today
🤡 Meme Of The Day

🚀 How to Trade With 5-Minute Candlestick Patterns?

5-minute candlestick patterns are short-term price charts that help traders make decisions within a five-minute window. These patterns show how prices are moving and give clues about market direction. They are useful because they can signal whether prices might go up, down, or stay on the same path, helping traders act quickly and wisely.

For traders of all levels, 5-minute candlestick patterns provide:

Instant Market Updates: Quick insight into how prices are changing.
More Trading Opportunities: Plenty of chances to buy or sell.
Easy-to-Spot Signals: Clear patterns that guide trading decisions.

PDF Printable Version

1. Spot Reversals to Catch Market Changes

Reversal patterns help traders identify when a trend might change direction. Recognizing these patterns early allows for better entry or exit points in trades.

Important Reversal Patterns:

Bullish Engulfing: A big green candle fully covers a red one, suggesting prices may rise.
Bearish Engulfing: A big red candle completely covers a green one, hinting at a drop in prices.
Hammer: A candle with a small body and a long bottom wick, showing strong buyer interest at lower levels.
Shooting Star: A candle with a small body and a long upper wick, signaling potential price drops.
Morning Star/Evening Star: Three-candle setups that signal bullish (Morning Star) or bearish (Evening Star) reversals.

Tip: Wait for confirmation from the next candle before making a move.

2. Ride Trends With Continuation Patterns

Continuation patterns indicate a pause in a trend before it resumes, helping traders stay with the momentum.

Key Continuation Patterns:

Bullish/Bearish Tweezers: Matching highs (bullish) or lows (bearish) suggest the trend will continue.
Spinning Tops: Small candles with long wicks that show temporary uncertainty but typically lead back to the trend.

Tip: Use these patterns alongside tools like moving averages or RSI to confirm the trend.

3. Assess Trend Strength for Confidence

Some patterns not only show direction but also how strong the trend is, which can lead to bigger profits.

Patterns That Show Trend Strength:

Three White Soldiers: Three consecutive green candles closing higher, showing strong buying pressure.
Three Black Crows: Three red candles closing lower, indicating strong selling pressure.

Tip: Check the trading volume—higher volume strengthens the signal.

4. Use Multi-Candle Patterns for Better Accuracy

Multi-candle patterns provide stronger signals about market direction compared to single-candle setups.

Key Multi-Candle Patterns:

Three Inside Up: Indicates a bullish reversal when prices are falling. The second candle forms inside the first, and the third candle breaks higher.
Three Inside Down: A bearish reversal pattern that appears when prices are rising. The second candle forms inside the first, and the third candle breaks lower.

Tip: Combine these patterns with support and resistance levels for more reliable predictions.

Risk Management
Managing risk is key to successful trading on 5-minute charts. It helps protect your money and ensures you can keep trading over time.

Stop-Loss Orders: Set up automatic limits to stop losses if a trade goes against you.
Limit Risk Per Trade: Choose the size of your trades based on how much risk you’re comfortable with. Only risk 1-2% of your money on each trade. It's better to aim for small, steady profits than to chase big wins.
Diversification: Spread your trades across different markets to reduce risk.
Avoid Overtrading: Be patient and focus on quality trades. Don’t rush into trades without proper analysis.

Step-by-Step Strategy to Multiply Your Capital

🤑 Who’s cashing in on the crypto bull run?

Who’s Really Benefiting?

The ongoing crypto bull run, fueled by trading frenzies (especially memecoins), has created significant profits. And the smart traders with long-term vision and decisive will win this game? No, while traders experience volatile gains and losses, the real winners are crypto infrastructure providers - the "picks and shovels" of the industry:

Comeback to the California Gold Rush (1848–1855) .While miners searched for gold, most wealth went to entrepreneurs selling tools and services (e.g., picks and shovels).

In crypto, infrastructure providers play the same role. Trading platforms, blockchain networks, wallet providers, and DApps profit from user activity, regardless of market direction.

Decentralized applications (DApps): Platforms like Raydium (a Solana-based automated market maker) have seen record revenue from trading fees.
Decentralized Exchanges (DEXs): Solana’s DEX volumes skyrocketed, reaching $10 billion at their peak.

whos-really-getting-rich-from-the-crypto-bull-run

The chart shows that decentralized exchanges on Solana are making big profits because trading activity has increased a lot due to the memecoin craze, leading to higher fees collected.

Key Beneficiaries of the Crypto Boom

Exchanges and DEXs: Exchanges generate substantial revenue from trading fees during bull runs. Sophisticated wallets (like Phantom) are capturing activity by integrating seamlessly with trading ecosystems.
Stablecoin Issuers: Companies like Circle and Tether benefit as the demand for stablecoins grows with increased trading activity.
Token Launch Platforms: Platforms like Pump.fun have seen transaction volumes surge during the memecoin boom.
Liquid Staking Platforms: Services enabling staking and restaking (like Jito on Solana) are becoming major fee generators.
Aggregators and Middleware: Tools like Jupiter, which facilitate token swaps, and oracles providing market data also profit from increased activity.

Is the current crypto bull run sustainable?

Analysts warn the current surge might not last: In March 2024, Solana’s fees jumped from $200K–$400K per day to $2M–$3M before stabilizing around $1M–$2M.

To maintain momentum, Solana and other networks need to expand use cases beyond concentrated trading activity.

Conclusion

The real winners of the crypto bull run are infrastructure providers, not individual traders. These companies profit consistently from trading activity and fees, irrespective of market volatility. To sustain growth, blockchains like Solana must address scalability and expand their use cases. Meanwhile, the "picks and shovels" analogy from the Gold Rush remains a relevant framework for understanding who truly benefits in speculative booms like crypto bull markets.

⭐ Top Highlight in Crypto Today

💰 The crypto industry spent $144M on elections, influencing 85% of backed candidates, aiming for favorable regulations. Ripple’s XRP surged 300%, and bipartisan legislation FIT21 may reshape crypto oversight.

🎭 A fake virtual meeting app, "Meeten," targets Web3 users, stealing cryptocurrency via malware. Scammers impersonate contacts, use fake websites, and prompt app downloads, affecting Windows and macOS.

📈 Florida's state pension fund plans a $1.85 billion Bitcoin investment, leveraging 1% of its $185.7 billion fund. With $800M already in crypto, leaders back Bitcoin for diversification despite volatility concerns.

💸 Paxos' November 2024 PYUSD report shows $539.8M tokens in circulation, backed by $551.1M in assets, including $450M in U.S. Treasury repos and $26.3M in cash deposits.

💵 Crypto tax-loss harvesting lets investors save on taxes by selling underperforming assets, offsetting gains, and deducting up to $3,000 annually. Losses above the limit can carry forward indefinitely.

💲 The U.S. Treasury's Q4 2024 report calls Bitcoin "digital gold," emphasizing its role as a store of value. It notes digital assets' growth, driven by Bitcoin, Ethereum, and stablecoins, despite limited adoption.