A crypto bull run happens in phases, each with unique patterns. Here's are the stages of crypto Bull Run:
1. Accumulation Phase
This phase comes after a market drop. Big investors, or "whales," start buying crypto at low prices. Trading activity is low, prices remain stable, and public interest is also low.
2. Early Rally Phase
Slowly, buying pressure increases. Prices begin to rise, but the change is not obvious. Experienced traders notice signs like price breakouts and higher trading volumes, indicating a market shift.
3. Public Participation Phase
As prices climb, more people notice. Retail traders and media coverage boost public interest, drawing more buyers into the market. This increased demand accelerates price growth.
4. Euphoria Phase
Prices hit new highs, and optimism takes over. Media hype fuels excitement, attracting inexperienced traders who believe prices will keep rising. This results in sharp price increases.
5. Distribution Phase
Big investors start selling to take profits. Prices slow down or drop slightly, but retail traders keep buying, unaware the market may be peaking.
6. Downtrend and Correction Phase
Selling increases, demand decreases, and prices fall sharply. Fear replaces excitement as traders panic-sell. This correction may lead to another bear phase.
Conclusion
Crypto bull runs are intense and emotional. Understanding these phases and managing risks is essential for success in the volatile crypto market.
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