The Roadmap of a Bull Market
In a classic bull market: Bitcoin rises first, dominating the entire bull market, while altcoins remain in a bottom consolidation state for most of the time. Three-quarters of the bull market cycle is a bear market for altcoins, with only a few short months experiencing a significant upward trend.
At the beginning of the bull market, the entire industry is still shrouded in the fear of the bear market, and investors generally adopt a cautious attitude towards the market. Funds tend to flow into Bitcoin, which carries the lowest risk, while avoiding altcoins that have already fallen to despairing levels. Therefore, Bitcoin initiates the upward trend first.
As the bull market progresses, with Bitcoin breaking through historical highs, market sentiment gradually warms up, panic feelings ease, and investors begin to have the motivation to focus on and invest in altcoins. On the other hand, long-term holders of Bitcoin have already reaped substantial rewards, and funds begin to overflow from Bitcoin to those undervalued altcoins with greater growth potential.
Currently, with Bitcoin's price breaking through $100K, many long-term holders are starting to sell, which limits the upward potential of Bitcoin in the later stages. Although Bitcoin is still around $90K to $100K, as long as it continues to consolidate without absorbing significant funds to pump the price, altcoins will inevitably usher in their main upward wave, with growth surpassing that of Bitcoin.
After altcoins complete their main upward wave, during Bitcoin's top consolidation phase, the continuous rise of altcoins will attract a large number of external investors, including those latecomers. These latecomers often find it impossible to buy cheap, high-quality altcoins and can only choose yet-to-launch junk coins. When junk coins also start to skyrocket, the bull market can essentially be declared over.
