Grasping the Core of Sector Rotation
Rotation Categories
The overall market direction rotates mainly between BTC and altcoins.
The rotation of altcoin cycles is further divided into two main categories: MEME coins and secondary coins.
Characteristics of Sector Bottoms
Retail investor sentiment is low, with most people either watching from the sidelines or afraid to enter the market.
The K-line and weekly charts show sideways fluctuations without a clear trend; the market seems to be consolidating.
There are many FUD topics, frequent negative news appears, and market sentiment is generally pessimistic.
Characteristics of Sector Tops
Retail investor sentiment is high, and the market is filled with optimism, with many people chasing prices.
Most related coins have already experienced several times the increase, and the expectations of explosive growth are gradually being digested by the market.
There are many positive topics being discussed, with heated discussions and positive news flooding in; many people are talking about the future of these coins.
Summary
In recent years, the rhythm of sector rotation has been basically like this. As long as you follow this rhythm, you can seize opportunities at the correct position in the cycle and become one of the few who achieve results in the end.
Remember, enter the market when sentiment is low at the bottom, and be cautious when sentiment is high at the top.
