The 6 Phases of a Crypto Bull Run
Crypto bull runs often unfold in six distinct phases:
1. Accumulation Phase: Following a market correction or bear phase, large investors and savvy traders start accumulating assets at lower prices. During this phase, prices stabilize, and trading volume is often low.
2. Early Rally Phase: As buying pressure builds, prices start to increase. This rise may go largely unnoticed at first, but early indicators like technical breakouts, volume spikes, or strong support zones signal a potential uptrend.
3. Public Participation Phase: Once price gains become noticeable, retail traders and mainstream media start covering the rise. This creates a snowball effect of FOMO (fear of missing out) that attracts more people into the market.
4. Euphoria Phase: At this point, prices reach new highs, and sentiment becomes overwhelmingly positive. Media hype, speculative investments, and retail FOMO are at their peak.
5. Distribution Phase: Smart investors and whales may start selling their assets to lock in profits. As they distribute their holdings, prices begin to stabilize or pull back.
6. Downtrend and Correction: Eventually, the supply from selling pressure overcomes demand, and prices begin to fall sharply. Panic selling ensues as fear replaces FOMO, leading to a sharp decline.
Monitoring these phases, using technical indicators, and managing risk are essential for making the most of a bull run.#BinanceAlphaTop5 #BTCNewATH #PENGUOpening #BinanceAlpha #USUALSpotPrediction