Market stage analysis
Price fluctuations and market sentiment will perform differently in different market cycles. The following are typical characteristics of each stage:
1. Early stage of bull market:
- Characteristics: Slow rise, most people can't feel it, the market fluctuates upward.
- Current market performance: BTC prices have risen slowly recently, there is a large space for band operation, and the market is gradually warming up.
2. Early stage of bear market:
- Characteristics: Slow decline, most people feel that there are new highs, but in fact, chips are being distributed.
- Current market performance: If you observe that prices are gradually falling and market sentiment is still optimistic, you need to be alert to the possible early stage of bear market.
3. Bottom stage:
- Characteristics: Continuously create panic, prices hit lower, and the market is extremely pessimistic.
- Current market performance: There has been no obvious panic and continuous sharp drop recently, and the characteristics of the bottom stage rarely appear.
4. Top stage:
- Characteristics: Continuously create positive news, prices hit higher, and the market is extremely optimistic.
- Current market performance: If there are frequent major positive news and prices hit new highs, be alert to the top stage.
Looking back at the market in July, it is obviously in the third stage. Most of the altcoins are at the bottom. Dog dealers continue to create panic to lower the price of coins and drive people off the train. Even the good news has turned into bad news. However, the market has obviously improved today. It may be in the transition from the third stage to the fourth stage. Brothers, don't lose confidence in the market.
