Grasping the core of sector rotation is crucial.
First, the categories of rotation are mainly divided into large directional rotations, namely between BTC and altcoins; and within the altcoin cycle, further divided into MEME and secondary coins.
Secondly, understanding the characteristics of market bottoms and tops helps us assess market trends.
Market bottoms typically exhibit low retail sentiment, horizontal K-line weekly levels, and a prevalence of Twitter-related FUD topics.
Market tops, on the other hand, show high retail sentiment, with most related coins experiencing several times over in gains, and a prevalence of positive topics on Twitter.
Looking back over the past few years, the characteristics of sector rotation have been fundamentally the same. By following the aforementioned rhythm, we may become one of the few who achieve results in the end.