The last drop may occur in Q2 to Q3 of next year, followed by a major bull market in 2026
The market may be brewing a "last drop," likely occurring between the second and third quarters of 2024 (after April). If an economic recession unfolds as expected, this will lay the groundwork for the next round of easing and liquidity injection, potentially leading to a major bull market similar to late 2020 to 2021 in 2026, especially a significant rally in altcoins.
1. Possible Market Evolution
• Q2-Q3 2024: The last drop
If a recession occurs, market panic will quickly escalate, akin to the historical "312 event" (the sharp decline in March 2020), which could lead to panic selling with significant declines.
• End of 2024 to 2025: Easing and liquidity injection
The Federal Reserve may rapidly lower interest rates to zero during an economic downturn while restarting QE (quantitative easing), releasing a large amount of liquidity to rescue the economy, similar to the response model in 2020.
• End of 2025 to 2026: Full bull market
As the economy recovers and liquidity floods the market, sentiment will shift to extreme optimism, and altcoins are expected to experience a major rally, potentially repeating the bull market of 2020-2021.
2. Current Strategy: Timing the Layout
• Recession is an opportunity: Economic downturns are often the best times to position in risk assets, picking up bargains in panic forms the basis for bull market gains.
• Focus on key supports: Such as important support levels for Bitcoin, market liquidity indicators, and changes in interest rate policies.
• Great potential for altcoins: In the next bull market, funds may rotate from mainstream currencies to altcoins, allowing for early selection of quality projects for positioning.
3. Risks and Considerations
• Short-term volatility: The market may experience severe fluctuations during a recession, necessitating position control and risk management.
• Policy uncertainty: The pace and scale of the Federal Reserve's liquidity injections will directly impact the market's recovery timeline.
Summary:
The "last drop" may be brewing in Q2-Q3 of 2024, with market panic potentially creating historic positioning opportunities. If an economic recession triggers liquidity injections and easing, 2026 is expected to welcome a major bull market, especially a significant rally in altcoins. The key lies in patiently waiting for opportunities amidst panic and preparing in advance.