We are currently in phase 2: the Disbelief Rally.
The majority of people in the crypto space are still hoping for Bitcoin to drop below $25K so they can load up on their bags again, just as they were wishing for a $10K target in the past few months. They have completely missed the entire move and are now looking for entry points.
Some of the coins that had their first leg up during the genesis phase have reached new cycle highs and are showing positive signs of a continuous rally.
Those who have been tracking fundamentals and on-chain growth have positioned themselves to profit. These individuals will likely outperform everyone in the upcoming bull market.
On-chain and fundamental analysis can be a superpower. Once you know how to do it correctly, you can consistently win, even in a bear market.
We will enter the 3rd phase when Bitcoin breaks the first psychological level of $50K in the coming weeks. Alts will start seeing some correction after that, and Bitcoin might go on a wild run, possibly hitting its all-time high sooner than expected.
Once Bitcoin finds its top, Ethereum will begin to outperform the market, and the altcoin market will become very dynamic.
Money will start flowing into different crypto narratives again, some of the narratives will outperform the market.
However, some people will still complain that their bags aren’t moving because they haven’t evolved; they are still holding old bags of ghost projects. Cryptocurrency projects with better tokenomics, on-chain growth, and a strong flywheel will outperform the market.
Those who understand how to use on-chain analysis platforms like Arkham, Token Terminal, DeFiLlama, etc., will likely see significant returns.
The 4th phase will be euphoric, with the masses entering the crypto market again. Most of the money will flow into simpler investments, meme coins, and low-quality coins.
This is the best time to start taking profits because the euphoric phase is the shortest phase of the alt season, and it rarely ends well.
The 5th phase is the doomed phase, where the market crashes again, new bagholders are born, cryptocurrencies are declared as scams again, and generational wealth is lost once more.
