Author: AlΞx Wacy, Crypto Researcher
Compiled by: Felix, PANews
In past bull markets, all altcoins do not surge simultaneously. This refers not to a 10-30% increase, but to surges of 300-700% or even higher. These rotating surges constitute the entire bull market cycle.
Capital continuously flows between different tokens, which is why altcoin season lasts not just a week, but for months. The previous capital flow situation is as follows:
BTC > ETH > High market cap tokens > Low market cap tokens > BTC……
But this pattern is now outdated; the current capital flow cycle is more subtle. Each phase will be discussed in detail below.
First phase
BTC remains the leader. Market giants lead the crypto trend, but once BTC stops rising (or slows down), other tokens will 'take over'.
Second phase
SOL, as a standout among altcoins in this cycle, is beginning to rise. Some major altcoins may follow, but perform weaker (currently in this phase).
Third phase
The following tokens may 'take over' the rise of SOL:
Mainstream memecoins: DOGE, SHIB, PEPE, WIF, BONK, POPCAT
Mainstream altcoins: RENDER, SUI, APT, LTC, etc.
Some tokens may perform poorly or explode late.
Fourth phase
The most popular narratives dominate this phase. Memecoins, AI, RWA, and combinations of these narratives, such as AI memes and AI x DePIN, etc.
Some narratives will be skipped, and players may get stuck. Therefore, choose wisely.
Fifth phase
In this phase, low market cap tokens begin to rise rapidly, often increasing every hour. This phase is the best trading opportunity for solid memecoins and fundamentally strong projects. Choose the best-performing tokens, as market surges and plunges often occur.
Sixth phase
Funds are flowing back into BTC. As the market matures, these cycles become increasingly difficult to predict. Don't waste this bull market; you still have time to make life-changing money in the next 5-9 months.
But remember one important thing, you can accumulate wealth in two ways:
Long-term holding of appreciating tokens
Trade using tokens that rise faster
Historically, less than 1% of those who attempted the second method have achieved long-term success.
Therefore, most of your funds should still hold long-term positions. If you want to seize every surge opportunity, you should use spare funds (small positions).
Related reading: Why did Memecoins explode first in this bull market? A brief discussion on the new logic of asset sector rotation
