The market has currently entered a rotation phase of leading altcoins in various sectors, signaling the beginning of the altcoin season. In each round of the bull market, we see these several phases:
In the first phase, a large amount of capital flows into Bitcoin, the bull market begins tentatively, and Ethereum and altcoins are always weaker than Bitcoin.
In the second phase, Bitcoin reaches a relatively high point, and its market share reaches a possible strong resistance level that could be the top. Subsequently, Ethereum leads mainstream coins to counterattack.
In the third phase, the leading altcoins in various sectors begin to lead the rise.
In the fourth phase, altcoins begin to go wild, with coins often doubling or tripling in value daily. People's trading sentiment reaches a peak, followed by a panic that ends the bull market.
When Bitcoin rises to a relatively high point, people will weaken their trading interest in Bitcoin, and funds will flow into Ethereum and some mainstream coins. When these coins rise to a relatively high point, funds will flow into other altcoins. Due to their smaller market capitalization, we can see that a portion of capital inflow can lead to several times of growth.
Finally, when Bitcoin's market cap drops to about half of this round's bull market peak, the bull market ends and enters a bear market. After Bitcoin drops about 70%, the main force begins to lay out Bitcoin at the bottom, waiting for accumulation to finish before starting to lift, entering a new round of bull market repeatedly.
BTC is the starting point, ETH is the catalyst, and altcoins are the subsequent climax:
The altcoin season in the bull market is actually a comprehensive result of market sentiment, narratives, and capital flow. Reviewing history, BTC and ETH are the prelude, and the rotation of altcoin sectors is the main theme. Grasping this rhythm through continuous learning and adjusting strategies is the only way to achieve long-term victory in the ever-changing stage of the crypto market.
The altcoin season in the bull market is actually a comprehensive result of market sentiment, narratives, and capital flow. Reviewing history, BTC and ETH are the prelude, and the rotation of altcoin sectors is the main theme. Grasping this rhythm, through continuous learning and adjusting strategies, is the only way to achieve long-term victory in the ever-changing stage of the crypto market.
1. Layout leading sectors in advance: Prefer projects with clear narratives and solid technology, such as leading public chains and exchange platform tokens.
2. Track the fermentation time of narratives: Narratives such as MEME and gaming usually require time to ferment, follow up decisively after finding the starting node.
3. Pay attention to the rise of new sectors: For example, BTCFi, RWA, etc., which combine with traditional assets and innovative gameplay, may be the next rotation hotspot.
4. Dynamically manage positions: In the context of rapid narrative switching, reasonably take profits and stop losses, avoiding heavy positions in a single sector.
Since ETH has started its second wave of increases, given the larger background, there is a high probability of a general rise across all altcoin sectors. However, if looking for specific sectors to perform well, the following are worth choosing: new and old public chains, MEME, L2 on ETH, and AI-related projects (like AI+MEME). As for gaming, it’s not that it’s not selected, but it might be a bit later.
What does the crypto market speculate on? It often ultimately reflects on specific coins. So how to find and judge the next speculative sectors in the crypto market? Look at the projects launched by Binance and the US macroeconomic situation, as well as what is reported by major media in the US.
In terms of grasping the new narratives and new tracks in the market, Binance is the industry's barometer, coupled with Binance's liquidity support, this cannot be questioned.
More importantly, it’s the information from the United States. Not to mention, the rise of DOGE and PNUT says it all. So it’s essential to pay attention. As for SOL, don’t forget this is a project created by powerful American capital investments and market makers, and indeed SUI, APT, OMNI, ALT, etc., are all part of this!
The market rises generally, pay attention to the action of reducing positions in segments:
Let’s take a look at our recent rhythm and operations.
XTZ and FTM, lately everyone has noticed that every wave of market has an opportunity for old mainstream coins to perform. From SUI to now, EOS has also started to double. We have to find coins in the same sector that have not performed. This way, we can ensure the safety of our positions and achieve good returns. Last Monday, we recommended FTM at 0.7 and XTZ at 0.82, which were basically starting points. A general rise performance also started over the weekend. This time FTM had a profit increase of 35%, and XTZ was even more powerful, directly doubling returns. Now there is still an 85% profit, achieving a double within two days is not a problem, and we must seize the opportunities provided by the market!
Now let’s look at the public targets I posted, starting with ORDI. When Bitcoin is rising alone, one should consider ambushing in the BTC ecosystem, which is the underlying logic of altcoins. ORDI is currently ambushed at 38, with a 15% increase. However, in the current segment, we can see a 50% increase, and the long-term target is 100!
There is also FET, which is one of the top leaders in the AI sector. This round of AI hasn’t performed much yet, and with the Weida earnings report on Wednesday and the AI conference next month, it further confirms that AI will start a general rise.
On January 3rd, I publicly began to lay out FET, and as expected, it started a general rise, currently with a profit increase of 20%. The publicly reported targets have nearly 50% returns. If you still haven't caught the general rise target at this point, it’s time to think seriously. We will continue to hold FET until 1.8 for reducing positions, after all, there is an AI conference next month!
Overall, during the general rise phase, our ambushes have been relatively good. Many people's altcoins in hand haven't moved yet. First, check which sector and which coin you hold, whether there will be unlocks or speculation possibilities later. If not, then it's time to change positions without hesitation, and don't miss this hard-won general rise phase. Seizing the current profits is what truly matters!
