It is now clear that the bull market has started, and there is basically no doubt about this. It can be said with certainty that this is only the first stage of the bull market.
Next, the second stage that is about to enter is the key, because this is the most efficient period for making money in the entire bull market. If the rhythm is not grasped well, it is likely to miss the best opportunity of this wave of market.
Let’s first briefly talk about the characteristics of the first stage: BTC led the rise, only a few sectors performed well, and most altcoins performed generally. The logic behind this has actually been mentioned before, so let’s briefly summarize it here:
1) When the market just started, market confidence had not yet fully recovered, and a sharp rise in BTC was needed to give the market a shot in the arm and tell everyone that "the bull market is really here."
2) When BTC has a small correction, because most people have experienced the deep lock-in of altcoins in the bear market before, there is a strong sense of panic, which causes the correction of altcoins to be deeper.
3) Many altcoins still have a large number of locked-in shares. Even if the main force wants to pull up the market, it will repeatedly wash the market at some key positions.
The second stage of the bull market can be said to be the most exciting part of the entire market. At this time, due to the continuous rise of BTC, market confidence has become more and more sufficient, and funds have begun to become active. In addition, some sectors have experienced a surge in the first stage, which makes the atmosphere of the entire market very "subtle".
Why is it wonderful? Because those coins that have skyrocketed will become the "benchmark" in people's minds, and everyone will use their growth to measure the market. However, only a few sectors and coins have risen well, and most people are actually still losing money or even not making any money. This makes people who have not made money start to envy and even jealous.
As the saying goes: "Brothers can lose money together, but I can't stand you getting rich alone!" This emotion directly drives the biggest feature of the second stage: the get-rich-quick effect of hot sectors will be further amplified.
The reason is simple: the market will continue to promote the "potential" and "bright future" of the sectors that have risen in the first stage. The focus of speculation at this stage is no longer how many times it has risen or how high the market value is, but whether there is new capital entering the market. But the actual situation is that many people can't help but rush in while cursing those who have become rich. Therefore, in the second stage, the market will often rise generally, and the wealth-exploding effect of the leading sectors will be more obvious.
As for which sectors are likely to see the get-rich-quick effect, I personally think the focus is on the MeMe sector for three reasons:
1) In the past month, MeMe had the best market performance and the strongest money-making effect.
2) Although the “MeMe super cycle theory” is controversial, most people in the market have already accepted this statement.
3) Binance’s support for MeMe has been significantly strengthened, raising the “ceiling” of the sector and creating a very prominent wealth-creating effect.
As for the MeMe section, for people (here referring to those who are not professional technicians or those who spend a lot of time on the local dog every day), there are three ways to play MeMe
1. MeMe in the exchange
Although the increase of MeMe coins in the exchange will not be as exaggerated as that of the chain, it is more suitable for large-scale capital operation or as a target for heavy investment. After all, in a bull market, only MeMe coins in the exchange have strong liquidity to carry large amounts of funds. If the market value ceiling can reach 100 billion during the bull market, it still has the potential to increase by 100 times.
PNUT
Pnut is my favorite currency and the most important symbol in my portfolio for the following reasons:
1) Musk’s latest support makes it second only to Doge, and those ordinary MeMes that are randomly liked cannot compare at all.
2) Pnut represents the symbolism of animal rights and opposition to corrupt laws, and with Musk’s promotion, it has become closely linked to Trump’s election victory.
3) As a new coin launched on Binance, there may be a switch between old and new hot spots in the MeMe section, and Pnut, as a newcomer, is more likely to attract attention.
4) Looking back at the bull market in 2021, Musk used his influence to successfully popularize Doge and Shib. If this bull market starts, he is very likely to promote a new MeMe project again, and Pnut is currently the most suitable choice for this label.
ACT
In the AI era, AI MeMe has become the hottest topic. Although there are several MeMes of AI Agnet now, ACT is the only one listed on Binance, becoming the first choice for exchanges to carry large funds. And it is also a newly launched currency like Pnut.
2. High-quality MeMe on the chain
Selecting high-quality MeMe on the chain also has great growth potential. If you are lucky enough to be listed on Binance, it will really be like riding a rocket. But it should be noted that when MeMe falls, the volatility will also be large, so I will still control my position within the range that I can bear.
I will personally spend some time to study this in depth. Recently, due to the frequent listing of coins such as Pnut and ACT on Binance, the high-quality MeMe on the chain has risen sharply, but it has begun to adjust in the past two days. If it continues to pull back, it will be a good buying opportunity.
3. New MeMe
In this area, you need to keep up with market trends in real time and buy in time.
Position strategy operation
The market is now transitioning from the first stage to the second stage. The sign of full entry into the second stage is that Bitcoin (BTC) has once again pulled out several large daily-level positive lines and stood on a new level. However, if you wait until BTC starts to rise sharply before switching to altcoins, the price of altcoins may not be cheap by then.
Therefore, it is recommended to gradually transfer BTC positions to altcoins now. You can allocate more to key sectors, and build a small position in other sectors to test the waters. My own operation is that before last month, the position was mainly concentrated in BTC. Since last week, I have gradually adjusted and slowly turned to altcoins. The focus is on Pnut and the projects in the direction of action.