#加密市场反弹

How to distinguish the cryptocurrency market cycle

Market performance in the early stage of the bull market:

• Moderate rise: Prices start to rise slowly from the bear market low, with low volatility. At this time, the market is still recovering confidence, and the upward momentum mainly comes from the purchase of early investors. In the early stage of the bull market, mainstream currencies such as Bitcoin began to rise, but the increase was relatively mild.

• Slight fluctuations: The overall market is in a stage of slight fluctuations, and prices have not yet reached a new high, but have shown a clear upward trend.

Volume performance:

• Increased trading volume: Trading volume has begun to increase, but has not yet reached a peak. Market activity has gradually increased, but overall trading volume is still at a medium level.

Market sentiment performance:

• Cautious optimism: Market sentiment has gradually shifted from pessimism in the bear market to optimism, but investors are still cautious, and many people are skeptical about the arrival of the bull market. Market sentiment has gradually shifted from pessimism in the bear market to cautious optimism. Investors are skeptical about the market's rise and are worried about falling again, but after seeing the continued rise in prices, some investors began to try to buy in small quantities.

• Fear and Greed Index: The Fear and Greed Index shows that greed in the market has begun to rise, but has not yet reached its peak. For example, on January 7, 2025, the Fear and Greed Index was 66.

Technology Innovation and Application Performance:

• New Technology Emergence: Technological innovation has begun to attract attention, and some new projects and applications have begun to emerge, but they have not yet been popularized on a large scale.

Policy and Regulatory Performance:

• Policy Environment Improvement: The policy environment has begun to change positively, and regulatory transparency has gradually increased, but no major policies have been introduced.

• Trading Volume: Trading volume has begun to increase slowly, but it is still at a low level. At this time, it is mainly professional investors and some early participants who are trading, and the overall market participation is not high.

• Momentum Indicator: The momentum indicator begins to show positive signals, but the upward momentum is weak. For example, the momentum indicator of Bitcoin will slowly rise from the bottom in the early stage, showing a certain upward trend, but it has not yet formed a strong upward momentum.

• Performance of Altcoins: Altcoins perform relatively weakly, and funds are mainly concentrated in mainstream cryptocurrencies such as Bitcoin. Because the market funds are limited at this time...

To be continued