Understanding the Four Stages of a Bull Market Can Help You Profit! Friends who have experienced several rounds of bull markets know that a bull market does not surge straight up but has its own rhythm and patterns. If you can grasp these four stages, not only will you profit during the bull market, but you can also cleverly avoid the risks of getting stuck at high positions. Now, let's talk about these four stages of the bull market to help you navigate the market more smoothly!
First Stage: Market Quiet, Secretly Bottoming A bull market often begins when the market is particularly quiet, and everyone lacks confidence. At that time, almost no one dares to enter the market, and cryptocurrencies are deemed worthless. Many coin prices have fallen to rock bottom, mainstream coins remain stable, and small coins are ignored. But do you know? At this time, it is actually already secretly bottoming out, as smart money has been quietly collecting chips behind the scenes.
Second Stage: Gradual Rise, Many Doubt the Market is Starting to Recover, but Most Remain Skeptical. At this point, you will notice that news begins to increase, and discussions start on social media, but everyone still says, 'This is just a rebound, not a real bull market.' However, smart money has already started to position itself, and some veterans have quietly returned.
Third Stage: Frenzied Growth, Full Bloom By this stage, the bull market has gone completely crazy, with news flying everywhere and stories of 'getting rich overnight' all around. Both mainstream and small coins are rising, making the market quite lively. Newcomers rush in, small coins soar, and everyone is pondering how to make big money in the crypto world. At this time, the bull market truly erupts, and everyone is busy chasing gains and cutting losses.
Fourth Stage: The Bull Market Peaks, Crash Approaches The final stage of the bull market is characterized by reaching a peak followed by a crash. Market sentiment is extremely high, with even taxi drivers and market vendors discussing Bitcoin; that indicates the end of the bull market. Generally, mainstream cryptocurrencies start adjusting first, and if small coins rise slightly, the next step will be a significant drop.
Detailed Analysis of the Four Stages of a Bull Market
First Stage: Rebirth (January 2023 - January 2024) At this stage, the fatigue of the bull market hangs over the entire cryptocurrency industry, with an atmosphere of indifference permeating the market. The previous collapse of the bull market remains the focus of attention for both investors and media, and layoffs continue. However, in this seemingly bleak environment, prices have quietly begun to recover, with Bitcoin's price tripling. But most investors, still in a state of loss from previous investments, hardly notice this change. Only those experienced cryptocurrency investors who have gone through two or more cycles, with their keen market insight, realize that the bull market has quietly begun, while for most people, they still do not believe the bull market has started, remaining immersed in the shadow of the previous bull market.
Second Stage: Excitement (February 2024 - Early November) Starting from February 2024, the market entered the excitement phase. The prices of some cryptocurrencies approached historical highs, and market narratives began to resurface, albeit only a few each quarter. Within the cryptocurrency realm, everyone clearly knows that a bull market has arrived, but strangely, friends outside the industry are not very concerned. Layoffs have basically ended, but hiring has not yet restarted on a large scale, and the entire industry presents a relatively closed state. Investors are in a complex emotional state of both excitement and anxiety; on one hand, they are thrilled by the market rise, while on the other, they worry that it is just a temporary rebound. Overall, however, investors' lives in this phase are quite good, with cryptocurrency investors starting to profit. It's like the calm before the storm, as the market is brewing for greater changes.
Third Stage: Euphoria (Starts after November 5 Presidential Election) Currently, we are in the euphoria phase. This stage officially begins after the presidential election on November 5 and is a delightful moment. Almost every investor is making money, but speculators have not yet poured into the market on a large scale. The asset prices held by investors are continuously rising, with many surpassing historical highs. In the past, only a few new market stories would emerge each quarter, but now new stories appear every week; in the fourth stage: eventually, even daily new stories will arise. In this stage, the market displays an extremely optimistic sentiment, where every new idea is regarded as a 'good' idea, and everyone with followers is considered a genius, each having their own insights on new market narratives. There will always be someone making money on this week's hot cryptocurrencies, and they will not hesitate to flaunt it. This easily triggers other investors' 'fear of missing out' (FOMO+), seeing others make money while they miss the opportunity can be frustrating.
In this stage, new market stories continuously give birth to new coins, with prices rising every day; it becomes difficult for investors to hold all the rising coins. This leads to feelings of regret and discontent, as even if the coins they invested in this week see significant gains, hearing about other hot new coins they haven't ventured into rising even faster will inevitably evoke a sense of missing out on golden opportunities for wealth growth.