Hey crypto enthusiasts! đ
I wanted to share this insightful chart that breaks down the path to #altseason. Letâs go through each phase and discuss how we can apply this understanding to our trading strategies.
Phase 1: $BTC
- Money Flow: The flow of money moves into #Bitcoin, causing price surges.
- Phase Overlap:
 - Money starts flowing into $ETH , but it struggles to keep up with Bitcoin.
 - Ethereum goes back and forth with Bitcoin and begins outperforming it.
Phase 2: Ethereum
- Money Flow: Ethereum starts outperforming Bitcoin, and we hear talks of "the flippening."
- Phase Overlap:
 - Money starts trickling into large caps with significant buy-ups happening.
Phase 3: Large Caps
- Money Flow: Ethereum outperforms Bitcoin, and large caps start going parabolic.
- Phase Overlap:
 - Regardless of market cap, some #altcoins with strong fundamentals begin pumping.
Phase 4: Altseason
- Money Flow:
- Large caps have gone full vertical, and we see blow-off tops.
- Mid caps, low caps, and micro caps tend to pump around the same time.
- Large caps have been outperforming Bitcoin and Ethereum.
- Almost every coin is going parabolic regardless of fundamentals.
- Meme coins are everywhere, excitement is high, and thereâs a palpable mania in the air.
Current Market Insights:
Have you noticed the trend with ETFs? The first #ETF was for BTC, then ETH, and now many hedge funds are applying for a $SOL ETF. Unfortunately, these ETFs arenât pumping prices much due to #FUD from Mt. Gox and #Germany selling their BTC. Luckily, Germany has sold more or less 50% of their original BTC amount, but the most crucial aspect to understand is the market psychology.
The market isnât dipping because of Germany selling BTC or Mt. Gox refunding stolen BTC; it's due to peopleâs psychological reactions to these events. People are fudding themselves, despite the marketâs ability to easily resist all of Germanyâs Bitcoin.
Discussion Points:
- What phases have you observed in the current market cycle?
- How do you navigate through these phases in your trading strategy?
- Do you think market psychology plays a bigger role than actual events in price movements?
Letâs get the conversation started! Your thoughts and experiences can provide valuable insights for everyone.
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Note: This is an interpretation of historical trends and current market conditions. Always do your own research before making investment decisions.
#Crypto #Altseason #Bitcoin #Ethereum #MarketTrends #ETF #Investing #MarketPsychology
