The 4 stages of the bull market, only by understanding them can you make a lot of money!
People who have experienced several rounds of bull markets know that each bull market is not a soaring one, but has its own rules and rhythm. If you can grasp these 4 stages, you can not only make money in the bull market, but also avoid being trapped at high positions. Next, let's disassemble the 4 stages of the bull market so that you can be at ease in the market!
Phase 1: Silently building a bottom, the market is sluggish
The starting point of the bull market is often when the market is extremely pessimistic and bleak. At this stage, almost no one dares to enter the market, and everyone loses confidence in cryptocurrencies. The prices of many coins have fallen to the bottom, the mainstream coins are sideways, and the altcoins are even less popular. But at this time, they are actually quietly building a bottom, and smart funds have already been secretly absorbing funds.
Phase 2: Quietly rising, leeks don't believe it
When the market begins to rebound slightly, most people are still in a skeptical stage. At this time, you will find that the news is gradually increasing, and there are discussions on social media, but everyone is still saying "This is just a rebound, not a real bull market." But smart money has already started to lay out, and some old investors have also begun to re-enter the market.
Stage 3: Crazy pull-up, full-scale outbreak
This stage is the craziest period of the bull market, with news everywhere and all kinds of "wealth freedom" stories flying all over the sky. Mainstream coins and altcoins are taking off together, and the market is excited. Many newcomers have poured into the market, various small coins have skyrocketed, and everyone is talking about the opportunity to get rich in the coin circle. At this time, the real bull market has broken out, and everyone is chasing ups and downs.
Stage 4: The bull market has peaked, and the plunge has begun
The last stage of the bull market is the peak and then the plunge. When market sentiment reaches its peak, even taxi drivers and aunties in the vegetable market are talking about Bitcoin, it is the end of the bull market. Usually, the first to adjust is the mainstream coin, followed by a short-term catch-up for the altcoin, and then quickly turns to a deep correction. Panic spreads, and the previously skyrocketing coins have been cut in half, and the market has fallen into a cold winter again.
The four stages of the bull market are like a large-scale psychological game. Whoever can see the market rules clearly will have the last laugh in this game. Never get stuck at a high price because of momentary greed. Learn to stay calm in the carnival so that you can really make money in the bull market.