Just look at the first image to know.
Understand the Four Stages of a Bull Market to Profit!
Friends who have experienced several bull markets know that a bull market does not shoot straight up but has its own pace and rules. If you can grasp these four stages, not only can you profit during a bull market, but you can also cleverly avoid the risks of being stuck at high prices. Below, let's discuss these four stages of a bull market to help you navigate the market more adeptly!
Stage One: Market Lull, Quietly Building the Bottom A bull market often begins when the market is particularly quiet, and everyone has lost confidence. At that time, almost no one dares to enter, and cryptocurrencies are considered worthless. Many coins have fallen to their lowest possible prices, mainstream coins remain stable, and smaller coins are ignored. But did you know? At this time, the market is actually quietly building a bottom, and smart money has already been stealthily collecting chips.
Stage Two: Slow Rise, Many People Don't Believe the Market is Starting to Rebound, but Most Are Still Half in Doubt. At this time, you will notice that news starts to increase, and people on social media begin discussing it, but everyone still says: 'This is just a rebound, not a real bull market.' However, the smart money has already started to position itself, and some veterans are quietly returning.
Stage Three: Explosive Growth Mode, Fully Blossoming By this stage, the bull market has gone completely crazy, with news flying everywhere and stories of 'getting rich overnight' abound. Both mainstream and small coins are rising, making the market lively. Newcomers rush in, and various small coins skyrocket, with everyone pondering how to make big money in the coin circle. At this point, the bull market has truly erupted, and everyone is busy chasing gains and making trades.
Stage Four: The Bull Market Comes to an End, a Crash is Coming The end of a bull market is characterized by peaks followed by crashes. Market sentiment is extremely high, even taxi drivers and market vendors are discussing Bitcoin, which indicates the twilight of the bull market. Generally, mainstream coins start to adjust first, followed by smaller coins if they see a slight rise, leading to a subsequent major drop.
Detailed Analysis of the Four Stages of a Bull Market
Stage One: Rebirth (January 2023 - January 2024) In this stage, a sense of fatigue envelops the entire cryptocurrency industry, with an atmosphere of indifference pervading the market. The collapse of the previous bull market remains the focus of attention for investors and the media, and layoffs are still ongoing. However, in this seemingly sluggish environment, prices are quietly rebounding, with Bitcoin's price tripling. But most investors, due to losses from previous investments, hardly notice this change. Only seasoned cryptocurrency investors who have experienced more than two cycles, with keen market insight, realize that the bull market has quietly begun. For most, they still do not believe the bull market has started, remaining immersed in the shadow of the previous bear market.
Stage Two: Excitement (February 2024 - Early November) Starting in February 2024, the market enters the excitement stage. Prices of some coins approach historical highs, and market stories begin to reemerge, but only a few each quarter. Within the cryptocurrency field, everyone is well aware that the bull market has arrived, but strangely, friends outside the industry are not paying much attention. Layoffs have mostly ended, but hiring has not yet ramped up significantly, leading to a relatively closed state in the entire industry. Investors are in a complex emotional state of both excitement and anxiety, excited about the market's rise while worried that it may only be a temporary rebound. Overall, however, life is relatively good for investors during this stage, as cryptocurrency investors are starting to profit. It feels like the calm before the storm, with the market brewing greater changes.
Stage Three: Euphoria (Starts after the Presidential Election on November 5) Currently, we are in the euphoria stage. This stage officially began after the presidential election on November 5 and is a delightful moment. Almost every investor is making money, but speculators have not yet flooded the market. The prices of assets held by investors are continuously rising, many surpassing historical highs. In the past, new market stories would appear a few times each quarter, but now new stories emerge weekly. In the fourth stage, new stories are even appearing daily. During this stage, the market exhibits extreme optimism, where every new idea is seen as a 'good' idea, and every person with followers is regarded as a genius, each having their own insights into new market stories. There will always be someone making money on this week's hot coins, and they will not hesitate to show off. This can easily trigger other investors' FOMO, as seeing others make profits while they miss out can lead to frustration.
At this stage, new market stories continuously give rise to new coins, with prices of coins rising daily. Investors find it challenging to hold all the rising coins, leading to feelings of regret and dissatisfaction whenever they hear about other popular new coins experiencing even more rapid gains, as if they have missed out on excellent opportunities for significant wealth growth.
The Top Ten Signals Before the Arrival of a Bull Market
There are always some key signals before the arrival of a bull market. By capturing them, you can position yourself in advance and welcome the market's rise! Here, we summarize the ten most common signs to help you identify opportunities.
1. Monetary Easing, Ample Funds Central banks are easing monetary policy and lowering interest rates, leading to a market filled with funds. Bitcoin, as a 'safe-haven asset,' begins to gain popularity. The higher the inflation expectations, the more market demand there is for Bitcoin.
2. Institutional Funds Entering The Market Large funds and institutional investors begin to purchase cryptocurrencies, which often signals the imminent start of a bull market; their entry is a significant signal.
3. Soaring Social Media Activity If you notice a surge in cryptocurrency discussions on platforms like Twitter and Reddit, a FOMO (Fear of Missing Out) sentiment spreading, and retail investors rushing in, the bull market is very close.
4. Technological Innovation Explosion New technologies like DeFi and NFTs become popular, attracting a lot of attention and funding. The success of these new applications is often a catalyst for a bull market.
5. Bitcoin Halving Effect Bitcoin halves every four years, and the months following a halving typically trigger a new round of price increases, a pattern proven by history.
6. Whales Hoarding Coins Whales withdraw coins from exchanges to cold wallets, reducing selling pressure, indicating a tight supply and demand in the market, and prices are about to rise.
7. Mainstream Media Coverage Increases The focus of mainstream news and the public on cryptocurrencies surges, increasing market exposure and attracting more funds.
8. Increased Community Activity Telegram and Discord groups become active, with member counts surging, frequent airdrops and AMA events, and the market atmosphere becomes heated.
9. Rising Greed Sentiment The market's greed index climbs, and investors' bullish sentiment skyrockets, with funds starting to chase high returns from small coins.
10. Celebrity Effect and Brand Partnerships Celebrity endorsements for cryptocurrencies or large companies accepting Bitcoin payments often trigger widespread attention and market rises. These signals do not occur every time, but when multiple signs appear simultaneously, a bull market is often just around the corner. Grasp these signals and maintain rational decision-making, and you will be at the forefront of the market!
Follow me here, pierce through the fog of information, and discover the real market. Seize more opportunities for wealth passwords, and discover truly valuable opportunities; don't miss out and regret it.
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