Every bull market sees a correction, and this bull market will be no exception. Typically, a correction follows an election. While we don’t know exactly when this correction will occur, it’s important to be prepared. When the correction comes, it will likely feel like the market won’t recover, but remember this: the faster the market falls during a bull run, the faster it typically recovers.
In the 2021 bull market, the first bull run ended towards the end of April. A major correction followed in May, with BTC dropping from $60k to $30k—nearly a 50% correction. Altcoins fared worse, falling by 70-80%. However, a similar correction might not happen this time, mainly because the market now includes major institutional players. A 50% drop in BTC feels less likely this time around.
Still, if we observe the market closely, there are signs that we’re nearing a peak:
1. Fear & Greed Index: Currently, the market is in extreme greed territory, with a score of almost 90. This is a significant sell signal. This situation could persist for a few more days or even start declining tomorrow—it’s unpredictable.
2. Coinbase’s Popularity: Coinbase is now the #1 Finance app on both Google Play Store and Apple App Store. Historically, whenever this happens, it signals a market correction.
If a correction does occur, which projects will suffer the most?
The meme coin sector will likely take the biggest hit. Meme coins often pump on hype and tend to correct the hardest. I expect a significant correction in this sector. Additionally, altcoins overall will likely see substantial corrections.
That said, this bull run has so far been dominated by Meme Coins and AI Projects. If a correction occurs, I anticipate a shift in focus toward DeFi and Gaming projects.
One emerging narrative within AI is AI Agents. Projects related to this niche have substantial potential for growth. For example:
• VIRTUAL Protocol has already made notable progress in this field and could be listed on Binance soon. While the token has already gained significantly, any price dip might present a buying opportunity.
• Similarly, PHA (Phala Network), already listed on Binance, is worth watching. If its price drops during the correction, it could be a strong buy.
As for meme coins, they will likely recover after the BTC correction. One to watch is $1000SATS , which hasn’t seen a major pump yet. It’s poised for a rise after BTC stabilizes post-correction.
Finally, considering the market’s current overbought condition, I believe we’re in the last stretch before a correction. This correction could begin anytime within the next week. Stay cautious, and use this opportunity to reposition into projects that could perform well in the latter half of the bull run.
Prepare for a correction, but also recognize the opportunities it brings. The market will recover stronger in a bull run, and positioning in the right sectors will yield significant returns.
