In a cryptocurrency bull market, altcoin seasons typically experience the following four stages:
1- Bitcoin Stage: Funds first flow into Bitcoin $BTC, driving its price to new highs, and market sentiment begins to heat up.
2- Quality Large-Cap Coin Stage: Subsequently, funds move to high-quality large-cap coins like Ethereum ETH, SOL, etc., pushing their prices up and further confirming bullish market sentiment.
3- Strong Altcoin Stage: Next, funds enter strong altcoins such as YGG, NEAR, FTM, and INJ, which perform well with significant price increases. Positive news emerges frequently, while negative news is ignored or even interpreted as positive.
4- Small and Medium-Cap Altcoin Stage: Finally, funds flow into small and medium-cap altcoins, including SHIB, DOGE, PEPE, BONK, etc., leading the market into a frenzy where buying guarantees profit, with candlestick patterns growing larger and prices ignoring fundamental technical rules, distorting all indicators, as analysts draw increasingly outrageous prediction arrows.
5- Finale Stage: Bitcoin consolidates at high levels, volatility decreases, and some coins begin to stagnate or experience significant correction, while very small-cap altcoins show rapid doubling bullish candles, attracting the attention of new retail investors. This is a signal that the bull market is about to end, but most people remain at the center of the stage, unwilling to accept the ending.