Understanding the Technical Phases of a Bull Run There are four major phases in a bull cycle. Professional traders and investors always follow these phases when opening and closing their significant positions to maximize their rewards in the market. Although the specific altcoins (ALTs) may change with each bull cycle, these phases remain consistent. Analyzing historical data from previous bull cycles can help you understand them more clearly.

The Four Phases

Phase One: Bitcoin (BTC) Money Flow

This phase begins with capital flowing into Bitcoin, driving its price higher. Once Bitcoin achieves a new all-time high (ATH), it confirms this phase.

Will Bitcoin's price see further increases? Absolutely yes.

Phase Two: Ethereum (ETH) and Layer 2 Projects

The second phase sees substantial money flowing into Ethereum and its Layer 2 coins and tokens. We have already witnessed significant pumps in many Layer 2 projects, with price increases varying by token.

Will these coins see more upward momentum in the future? Absolutely yes.

Phase Three: Large-Cap Altcoins

During this phase, money flows into large-cap coins—generally the top 20 to 30 cryptocurrencies by market capitalization. Coins like ETH, SOL, XLM, BNB, ADA, and TON fall into this category.

Will there be more capital inflows and price surges for these coins? Absolutely yes.

Phase Four: Altseason

The final phase, often called "altseason," is when money flows into smaller altcoins, including Layer 1 and Layer 2 projects, as well as Web3 and DeFi tokens, especially low-cap coins.

Clarification on the Phases If you think we are currently in phase two, three, or transitioning into phase four, that assumption might not be entirely accurate. Except for the first phase, the remaining three phases often overlap and occur simultaneously to some extent.

No one can precisely time all four phases in a linear manner. Therefore, it’s crucial to monitor the market cycle carefully and make buying and selling decisions based on due diligence and research (DYOR).

Ignore those prematurely calling for exits; they might be experts or non-experts attempting to dissuade you from capturing the market's full potential. Instead, stay informed and adapt your strategy as the cycle evolves.