In a cryptocurrency bull market, altcoin seasons typically go through the following four stages:
1. Bitcoin Stage: Funds first flow into Bitcoin $BTC, pushing its price to new highs, and market sentiment begins to warm up.
2. Quality Large-Cap Stage: Subsequently, funds shift to quality large-cap cryptocurrencies like Ethereum ETH, SOL, etc., driving their prices up and further confirming bullish market sentiment.
3. Strong Altcoin Stage: Next, funds enter strong altcoins such as YGG, NEAR, FTM, and INJ, which perform exceptionally well with significant price increases. Positive news frequently emerges, while negative news is ignored or even interpreted as positive.
4. Small to Mid-Cap Altcoin Stage: Finally, funds flow into small to mid-cap altcoins, including SHIB, DOGE, PEPE, BONK, etc. The market enters a state of full frenzy, where buying guarantees profit, candlesticks grow larger, prices ignore basic technical principles, all indicators become distorted, and analysts draw increasingly outrageous predictive arrows.
5. Closing Stage: Bitcoin consolidates at high levels, volatility decreases, and some coins begin to stagnate or experience significant corrections, while extremely small-cap altcoins show rapid doubling green candles, attracting the attention of new retail investors. This signals the impending conclusion of the bull market, but most people still stand in the center of the stage, unwilling to accept the end of the show.
