The upcoming second phase is the most important because it is the most profitable phase in a bull market.
Written by: RiYue XiaoChu
Currently, it is quite certain that the bull market has started. It can be confidently stated that the bull market is in the first stage.
The soon-to-come second phase is the most important because it is the most profitable phase in a bull market; missing the rhythm may mean missing the entire bull market.
Let me briefly explain the first phase of a bull market. The characteristics are that BTC leads the rise, with only a few sectors effectively responding, while most altcoins perform poorly. The logic has actually been mentioned earlier in the article I cited, so I will just copy it here. 1) At the beginning of the market, confidence has not fully restored. A significant increase in BTC is needed to signal to the market that a bull market is here. 2) When BTC has a slight pullback, because of the difficult situation experienced in the deep altcoin market before, there is a severe panic mentality, and altcoins often fall more. 3) Altcoins often have a lot of trapped positions, and even if the main force wants to drive the price up, they can wash the market repeatedly at key positions.
Bull Market Phase 2: In the second phase, due to the increasing market confidence brought by BTC's rise, capital begins to be active, coupled with the fact that there were a few sectors that had skyrocketed in the first phase. This situation is very wonderful; first, with coins that have skyrocketed, people's minds will often reference its rise, and then only a few coins or sectors will lead to most people in the market not making money and even losing money, which makes most people envious. As the saying goes, good brothers can lose money together, but if you become rich alone, I cannot agree. This situation will lead to the second phase's biggest characteristic: hot sectors will continue to enhance the wealth effect. This is because the sectors that rose in the first phase are continuously promoting their benefits and bright futures. We need to understand that the endpoint of speculation is not how many times it has risen, nor how high its market value is, but rather the gap in buying funds. However, at this time, the situation is indeed the opposite, with many group friends cursing the wealthy brothers in their minds while still wanting them to show the way. Therefore, the entire situation in the second phase is that the market rises broadly, and leading sectors continue to exhibit the wealth effect. The broad rise is something I won't elaborate on, but what we want to find is the sectors that may have the wealth effect. Personally, I believe that this sector is MeMe 1) The most critical point is that in the past month, the best performance and the greatest profit effect have been from MeMe 2) The MeMe supercycle theory, regardless of whether this attack is correct, has been recognized by most people in the market 3) Binance has clearly strengthened its support for MeMe, and the ordinary ceiling for MeMe is being built higher, with significant wealth effects. As for the MeMe sector, for people (referring here to those who are not specialized technicians or those who spend a lot of time on meme coins every day), there are three ways to engage with MeMe.
1. MeMe within exchanges
MeMe on exchanges will not be as exaggerated as thousands of times on the chain, but it is suitable for large amounts of capital or as a heavy holding. In a bull market, only the liquidity of MeMe on exchanges can accommodate large amounts of capital. If the market cap ceiling in a bull market is calculated in hundreds of billions, there is still a hundredfold potential.
PNUT
PNUT is my favorite and will also be the most important marker of my position. 1) Musk's new support, its position is only second to doge, and cannot be compared to those liked MeMe. 2) Pnut symbolizes animal property rights, opposing corrupt laws. Under Musk's promotion, it has also become linked to Trump's campaign victory. 3) New coin on Binance, possibly distinguishing between new and old hype in the MeMe sector. 4) In the 2021 bull market, Musk used his influence to push Doge and Shib to prominence. If this bull market starts, Musk is very likely to promote a new MeMe again, and Pnut should be the most suitable label.
ACT
In the AI era, AI MeMe has become the hottest topic. Although there are already several MeMe related to AI Agents, ACT is the only one listed on Binance, making it the first choice for exchanges to host large funds. And like Pnut, it is also a newly listed coin.
2. High-quality MeMe on the chain
Selecting high-quality MeMe on the chain also has great potential for growth. If you are lucky enough to get listed on Binance, then you can ride the rocket. However, if it starts to fall, it can also be very severe, so personal positions should still be controlled within a manageable range. I will personally spend some time researching this area. Due to the many Punt ACT listings on Binance, high-quality MeMe on the chain has seen significant growth, and all of them have started adjusting in the past two days. If there is an adjustment, it is just the right time to buy.
3. New MeMe
This area needs to closely follow the market hotspots and buy in timely.
Position strategy operation
We are currently in the transitional phase from the first to the second stage of the market. The standard for fully entering the second stage is that BTC once again shows several daily level large candlesticks, reaching a new level. However, if we wait for BTC's large candlestick before shifting to altcoins, the price of altcoins may be relatively high at that time.
Therefore, the suggested strategy is to slowly start transferring BTC positions to other altcoins now, focusing on moving a bit more in key sectors, while entering a small position in other sectors. Before last month, I had most of my positions in BTC. Since last week, I have gradually been transferring my BTC positions to other altcoins, focusing on PNUT and action.
