Is it possible to anticipate what is to come?
How to choose what to buy and where to look when you start?
Have you already defined your strategy?
How about we analyze some data, separate the wheat from the chaff, and get started?
What is a Bull Market?
In stock market jargon, animals are often used to make analogies for the different types of investors. A whale is a large capital, whose movement shakes everything and causes a great impact, a stock market shark is one who goes after blood, those who short companies in trouble (the most hated), then we have the typology based on their orientation:
Bears and bulls.
Present on Wall Street, captured in a statue that is defined as being the graphic representation of the constant struggle between supply and demand.
Bears are bearish because of the way they attack: from top to bottom, knocking down the target. Bulls are bullish because the goring lifts its victim up.
Therefore, a Bull market is one where the bulls take control and everything they attack rises.
Liquidity is abundant and FOMO is rampant. Everything can go parabolically higher.
Projects with little or no fundamentals can explode, due to excess money and optimism.
Whales are often the biggest beneficiaries, generating millions in each BM.
Some retailers (shrimp) manage to make big profits, through luck and cunning.
Looking back, we are still far from it starting. But it is coming soon and you are going to have to stay away.
In the previous cycle, total capitalization exceeded 3 trillion, 50% above the current 2Q and the entire top 100 of cryptos enjoyed a minimum market cap of 1Billion, very far from the current one.
Most altcoins surpassed all-time highs and reached unimaginable levels, new narratives emerged and everything was partying and champagne.
But then Crypto Winter came... The entire ecosystem fell by 90% on average and only a few managed to recover.
Currently, almost the entire altcoin ecosystem is far from its highs, closer to its lows. And we have a BTC that reached over 70K
What happened then?
FOMO and the bull run happened, but the most crucial thing was missing: CAPITAL.
We cannot call this last cycle a Bull market, as only a few cryptos grew and recovered.
The meme narrative has taken over the market, which is a very bad sign.
This means that not only is there no money, but the existing "whales" are from the ecosystem. Former investors who saw their investments grow by millions and are now speculating on what is in fashion.
However, the wave of capital needed to really get things started has not yet arrived. At the moment there is only a "hand-holding", whales playing with trends and gaining little liquidity from excited retailers.
All liquidity was concentrated in BTC and ETH, and very little of the profits were reinvested in altcoins.
When will it arrive?
If you want to know this, you're going to miss it.
The question is not when, but what am I going to do or what am I doing in the meantime?
There is less left and that is due to:
Institutional capital found a legal way to bring money into the ecosystem, through ETFs and recently with the approval of options for ETFs.
The money will come, but do you think a Black Rock investor wants to buy Pepe or Fufu?
When the money comes, it will go to serious, legal projects with doxed teams. In short, to those where they have a certain guarantee of security, that their capital will not be the victim of a rug pull.
We're going to make a lot of money with memes, don't worry. When the market goes up, it drags everything along. The thing is, don't think that they're going to be the center of attention.
Where will the capital go?
We know that it will definitely enter $BTC and $ETH at least until a new ETF is approved.
However, serious and solid projects such as SOL, Polygon, FTM (Sonic coming soon), TON and TRX have an almost assured future.
All of these projects have development companies behind them, a doxxed team, and advances that generate real contributions.
There is a solid ecosystem, with well-established decentralized finance and in cases like TRX and TON, a real product: the Telegram platform and the minting of stablecoins. In addition to the advantages of transactions, speed and security.
Most people discard them because they believe that their momentum has passed, that growth will not be as explosive and that it is better to look for "Low cap" projects.
It's true, low caps are interesting, but they are forgetting the most important thing.
When an ecosystem grows, the second thing that grows with it (sometimes even more) is its main CEX (swap).
The most famous is UNI, which has managed to become interoperable and works on many chains. We have Pancake, the BSC titan... And then, why does no one look at the major CEXs of SOL, FTM, TRX, etc.
It is in them where we can see parabolic growth.
Next option:
Layer 2 projects.
As networks grow, especially ETH, they become saturated. That's why layer 2 options like Optimism, Arbitrum, Base, and others are so necessary.
They allow us to enjoy the capital of ETH, the security of the main network, but with the advantages of the new Blockchains.
Neglecting them will be expensive, that's for sure.
Finally, where does the money flow?
Whales have a rather cynical and selfish mindset. It is during the dips that they buy positions in a stealthy manner, building their portfolio away from public view, but no secret lasts forever.
The biggest symptom of institutional adoption in blockchain is the amount of value locked in networks. When TVL increases, it's because something is brewing inside.
We can review these values ââon platforms such as DefiLlama, where they track the evolution of the TVL in real time, giving us clues.
What is not measurable:
Look for what is rare, what is secret.
How strange that super-optimized networks that never stop innovating have no significance, right?
It's a bit strange that the most powerful projects are the most discreet...
The treasure hunt is about finding products that provide real value, that have not yet reached the mainstream.
If you are running after the news, let me tell you that you are doing wrong. Institutional investors have already bought and want you to provide liquidity, do not let yourself be manipulated.
When everything falls, which projects withstand the fall better than others? There you have a great clue.
Conclusions:
The bull market is coming, don't worry.
The question is, how are you going to prepare? It makes sense to think coolly and think long-term.
Don't wait for everything to go up to put your house in a token, buy what you have analyzed and wait for the moment, like whales do.
You're bound to make some mistakes, but you're not going to lose everything by thinking smart.
My advice? Don't take the examples I mentioned as an investment guide, but understand the concept behind it. Opportunities come before everything starts, so when prices start to rise, you have to be in and enjoying the profits.
The plan is to be as close as possible to the whales' movement, rather than running after them when we see the result.
Crypto Citizen says goodbye!! Don't forget to leave a like and follow me, articles with crucial information will be coming out soon and you won't want to miss them.
