If I knew this before my first bull market, I'd be 10X richer
Money flow cycle, rotations, and building an edge.
Crypto Bull Market Blueprint:
1. Crypto Asset Categories
There are 5 major categories and $BTC leads the marketđ
Each asset type has its own category and can be found on @coingecko or @CoinMarketCap
The risk increases as we go lower down the asset ladder
Making Majors the most secure sector after BTC. For example: $ETH, $SOL, $BNB
And micro caps are the least secure sector of the market. Example: the memecoin mania on $SOL
2. Money flow cycle
The money flow normally takes new traders 6-12 months to catch. So use this to get ahead now.
This is typically how you avoid buying tops and walk away with profits.
The psychology of money flow works like this:
1 Your friend buys BTC for $100, now it's worth $1000.
2 You want to buy BTC but think it's "too late".
3 You discover $SOL and think it will do as well as BTC did and it hasn't run yet.
4 This time BTC pumps even harder. So when $BTC does a 2X, $SOL does an 8X.
5 Your friend looks at your $SOL gains and invests in large caps to catch another $SOL-like pump.
6 The money then flows into micro-caps and eventually back into $BTC / FIAT.
If money flows back into $BTC, the bull market continues and the cycle repeats.
Otherwise, it flows into FIAT and everything crashes.
Either way, the traders who rotate their funds effectively between the categories and exit early, walk away with major profits.
Note: This doesn't always happen.
For example- In the current cycle, we've seen memecoins (micro caps) pump a lot harder than utility tokens (medium-small caps).
Cycle lengths also vary and categories can skip entirely- leaving us with a shorter cycle.
3. Narratives (2 types)
- Established Narratives
These are easy to spot and have historically shown signs of strength.
Memecoins, AI, DeFi, GameFi, exchange tokens, RWA, etc...
When one pumps expect others to follow.
- New Narratives
Harder to spot. The most common starting point is 1 outlier performer.
This requires 3 components; social media dominance e.g recently Murad and memecoins, extreme price rise, and a new story people can rally behind.
But how do you use this in trading?
Firstly, the bull market is forgiving.
There's higher volume and volatility that leads to more trade opportunities.
In bull markets, I use narratives discretionarily to take more aggressive bets.
This is extremely reliable, less stressful, and has helped me take home most of my bull market gains.
It requires some hard work, delayed gratification, and long-term decision-making.
You can do the same by studying patterns and flows of money.
Do utility tokens pump last? If so, how do we rotate profits out of them?
Does $ETH perform better than $SOL every time $BTC breaks out?
Do memecoins give great shorting opportunities when the market pulls back?
Those were just a few examples of questions to ask yourself.
You can find the right questions and their answers by showing up daily, studying the charts, reading sentiment, and noting your insights.
These are even more effective if you start BEFORE the bull market goes crazy.
âŠ.