Up to now in this round of bull market, except for Bitcoin and a few meme coins which have been advancing by leaps and bounds, most altcoins have performed mediocrely. Even the second-ranked ETH is still 50% away from its high point in the previous round.
According to the rotation logic of the crypto market sectors, there are generally four stages:
Phase 1: Bitcoin leads the rise and sucks blood crazily
Phase 2: Ethereum and strong competing public chains are linked, while Bitcoin is sideways
Phase 3: Projects with new narratives and projects with money and a desire to make things happen
Stage 4: A riot of demons, a mess
After talking about the appearance, let me summarize the logic in one sentence: the money in the market is always limited, even in a bull market. The flow of funds is driven by human nature and emotions. Smart Money comes to this market to do only one thing - maximize benefits. The rotation logic of the above four stages is exactly the flow direction of Smart Money and the speculative funds driven by it.
Let's cut to the chase. The rise of Bitcoin since November is obvious to all, so I won't go into details. As for the predictions of institutions or media that Bitcoin will eventually rise to $100,000, $120,000 or even higher in this bull market, I think it is not so important. Because after Bitcoin broke through the ATH at the beginning of this year, it continued to break new highs this month, sending a firm signal to the market that a bull market is coming, which is the most important thing. Secondly, looking upward from $90,000, in percentage terms, there is actually not much room. That's why we have the topic we are going to discuss today - how to choose a potential copycat.
Regarding the selection of altcoins, I would like to first give two principles that I think are worth referring to:
Buy strong, not weak
Buy new, not old
To explain briefly, the so-called "buy strong, not weak", how to judge strong and weak: two standards, one is to look at the exchange rate of a certain token to Bitcoin or Ethereum (horizontal comparison); the second is to buy the leader and not the second leader in the subdivided track (vertical comparison). Especially for the second point, don't be afraid to buy just because the leader has risen sharply, and turn around to choose the second or third brother behind. The second and third brothers will definitely make up for the rise, but only make up for the rise.
The so-called "buy new, not old" is relatively easy to understand. First of all, due to historical reasons, old coins have locked-in positions in many places, which is a very strong resistance in the process of price increase. Just look at the performance of LTC, BCH, and BSV in the last bull market. Therefore, when choosing the target of pulling the market, the funds will definitely not choose these bulky broken cars as the first choice. Do the main players have to spend money to carry the sedan chair for retail investors?
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