Bull market\crypto overall FOMO market has four stages
There are only three things you need to realize as a trader:
Identifying each bull market stage
Maximize your profits
Avoid the most common pitfalls
/ The first stage: accumulation stage
Terra collapse, FTX collapse, Binance regulation, BUSD removal, USDC decoupling
The price is in a weak small fluctuation phase, with no active liquidity and more of a game among crypto enthusiasts.
Perform operations: layout, planning investment sectors, and acquiring knowledge.
1. Increase the number of chips, including but not limited to: 1. Projects with long-term Roadmap. 2. A novel concept with a relatively low market value. 3. Projects with small token selling pressure or strong market competitiveness.
2. Study a lot and invest in research to prepare for making money during the FOMO period.
3. Hold a certain amount of stable currency to invest in newly launched, relatively excellent concept tokens.
4. Monitor Federal Reserve data and exchange liquidity changes.
/ Second stage: early bull market\first bull market surge
When the price starts to rise significantly, the market will still be skeptical, but whether you believe it or not, Bitcoin has risen to a new top position of 70,000 US dollars. Most people will be cautious because of the inertia of the bear market, which has led to a decline in yields. Considering the possible risks in the future, and due to liquidity and environmental factors, this is not enough to bring about a real bull market.
We are at this stage.
Factors that trigger the second stage may include:
-BTC’s halving narrative
-Spot ETF for BTC ETH
-The rate cut is coming
-The explosion of Hong Kong concepts, Japanese concepts, and Korean concepts
-Reduced regulatory pressure
-The emergence of a new economic model: Defi2.0?
Perform actions:
1. Partial profit taking. You cannot guarantee that your purchase price will make a perfect profit in this small bull market, so take the profit part.
2. Sell those tokens that have not experienced breakthrough gains in this market. Various potential factors prevent them from completing their gains in the rising market. These unknown reasons lead to high risks of long-term holding.
3. Don’t use any leverage.
4. Don’t ignore any MEME and decentralized IDO, this may be a 100x or 1000x opportunity.
5. Pay close attention to cultural leaders such as Musk, Buterin, SAM, NFT artists, etc. They may influence the high degree of fomo of certain concepts.
6. Reduce the investment range, concentrate on 2-3 tracks, continue to study and become professional, and ensure that you have a high level of awareness of the track.
/ The third stage: Super bull market\unimaginable bull market
When retail investors pour into the crypto market, the third stage of the bull market is officially announced, and huge fomo will sweep everything. BTC is likely to be FOMOed to 100,000 or even 200,000.
FOMO emotions will create a positive feedback loop that the bull market will never end, constantly pushing up the market bubble, and all traders are excited. Some people will even sell real assets and buy Bitcoin.
Execution operation: We need to find this top signal and stop profit in time.
Top signal: 1. Everyone thinks that this round of bull market is different from the past, and that the market will tend to be stable and low-opportunity in the future.
2. Mainstream media began to pay a lot of attention to cryptocurrencies.
3. Everyone is showing off their multiples and achievements.
We need to stop profit in time. If you don’t make a profit, the market will ruthlessly take back most of your efforts.
/ The fourth stage: the market with falling liquidity
When the inflow of funds cannot support the bubble cashing out, we enter the stage of the falling market.
Many holders will think that Bitcoin has become a mainstream asset and will enter a long cycle.
At this time, most projects have been launched, and Ponzi, project narratives (metaverse), and application landing will be mentioned.
Execution operation:
1. Return to life, as the number one player said: Although the reality is extremely terrible, only reality can eat a decent meal.
2. And simply participate in new narratives and applications, and plan the career and direction of the new cycle.
3. The external environment is still in a period of leverage accumulation. It is necessary to restrain the layout of traditional assets and observe the development curve of inflation, monetary policy and leading industries.
4. Wait for the arrival of the next bull market cycle.
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