Grasp the Core of Sector Rotation
Rotation Categories
The overall direction of the market rotates mainly between BTC and altcoins.
The rotation of altcoin cycles is further divided into two major categories: MEME coins and secondary coins.
Characteristics of Sector Bottoms
Retail investor sentiment is low, with most people either watching from the sidelines or fearing to enter the market.
K-line and weekly level horizontal consolidation, with no obvious trends; the market seems to be consolidating.
There are many FUD topics, negative news appears frequently, and overall market sentiment is pessimistic.
Characteristics of Sector Tops
Retail investor sentiment is high, the market is filled with optimism, and many people are chasing prices.
Most related coins have already experienced increases of several times, and the expectations for explosive growth are gradually being digested by the market.
There are many optimistic topics, heated discussions, and positive news abound, with many people talking about the future of these coins.
Summary
In recent years, the rhythm of sector rotation has been basically like this. As long as you follow this rhythm, you can seize opportunities at the correct positions in the cycle and become one of the few who achieve results in the end.
Remember, enter the market when sentiment is low at the bottom, and be cautious when sentiment is high at the top.