Revealing: The Five Stages of the 'Altcoin Season' in a Cryptocurrency Bull Market, How Many Have You Experienced?

In a cryptocurrency bull market, altcoins always create a wave of frenzy, from Bitcoin to small market cap coins, each step conceals opportunities and risks. Here are the five stages of altcoin season; understanding these may help you better grasp the market rhythm!

1. Bitcoin Stage

Funds first flow into Bitcoin ($BTC), pushing its price to new highs, and market sentiment shifts from cautious to optimistic. Bitcoin's strong rise lays the foundation for subsequent trends.

2. Quality Large-cap Coin Stage

Once Bitcoin stabilizes at high levels, funds begin to flow into quality large-cap coins like Ethereum (ETH), Solana (SOL), etc. The performance of these coins further strengthens bullish expectations in the market, attracting more participants.

3. Strong Altcoin Stage

Next, strong altcoins experience an explosive period, such as YGG, NEAR, FTM, and INJ. During this stage, positive news frequently appears, while negative news is overlooked or interpreted as positive, leading to an excited sentiment.

4. Small and Mid-cap Altcoin Stage

The market begins to shift towards mid and small-cap coins like SHIB, DOGE, PEPE, BONK. At this time, speculative sentiment reaches its peak, buying almost guarantees profits, technical analysis becomes ineffective, and candlestick patterns soar higher, with crazy price movements leaving people in awe.

5. Curtain Call Stage

When Bitcoin enters a high-level consolidation, the market begins to cool down. Some coins stagnate or even experience significant corrections, while very small-cap coins frequently double in value, attracting new retail investors in droves. This is a sign that the bull market is nearing its end, but most people remain immersed in the frenzy, unwilling to accept the reality that the market is about to peak.

The bull market will always come to an end, and each stage has its unique opportunities and risks. Learning to identify stage changes and controlling the rhythm is essential to remain undefeated in the market! Which stage do you think we are currently in? Feel free to leave your comments and discuss!