According to the cyclical law of the currency circle, 2022 will be the main bearish year, 2023 will be low-level shocks looking for the bottom, 2024 will be the main bullish trend, and 2025 will be high-level shocks looking for the top.
According to the cyclical law, 2022 is the best time to wait for a short position. It is not appropriate to still be short in 2023, because starting from 2023, the general trend will be upward in one to two years. Of course, it will be upward. The process will not be so easy. Repeatedly step back or even make new lows to find the confirmed bottom. If you have relatively strong funds, it is not appropriate to take a short position at this time. If you have relatively small funds and want to make a comeback in the next wave, I suggest you wait for the second bottom. of.
During this process, do not try to make profits from the fluctuations in the middle. This money is not so easy to make. Instead, it is easy to be buried by a wave and lose the opportunity. The cryptocurrency circle is a place where you can make money as long as you stick to the truth. Just follow the big trend and reject the temptation of fluctuations in the middle and the brainwashing of copycat narratives.
Summary of several stages of the bear market
Phase 1: The rapid collapse phase after the bull market. In this phase, you must be short because there is no operability at all. The market is characterized by panic selling, killing any variety. Until it reaches the starting point of the main rising wave of the bull market
Phase 2: As the oversold phenomenon in the first phase continues to accumulate, a retaliatory mid-term rebound will inevitably break out. This is a phenomenon caused by oversold and is a self-rescue behavior of institutions.
Phase 3: The last round of declines. After a mid-term rebound, funds leave the market again, market liquidity dries up, the market fluctuates and falls, and investor sentiment is low. When the last round of declines comes, most of the investors have been eliminated, the community is no longer active, KOLs are no longer talking, and the market is dead silent. This is often the best time to buy at the bottom.
The current market is just one step away from the final kill!
Some people cut their losses and left the market, while others bought more positions at a low point!
Will the second half of the year and 2024 repeat the situation after 2020? There are also several logical points worth noting:
1. The halving cycle is coming soon, and this rule has not been broken yet;
2. Entering the interest rate cut cycle again, we are currently at the turning point from the interest rate hike cycle to the interest rate cut cycle, and liquidity has become abundant again;
3. The web3.0 wave has arrived, and more and more talents and funds will come in; seize this opportunity!
4. You can also pay attention to ACH with Hong Kong concept, which will get the license at the end of the month
Key Narrative:
Web3: The sector with the most potential in the next bull market, and also a key area to attract external funds. L2: With the prosperity and development of the Ethereum ecosystem, L2 will be one of the most watched sectors in the new bull market, and has great room for appreciation in the long run.
Metaverse: The last bull market was only about concept speculation, but the new bull market will have more practical applications.
DeFi: Subverting the traditional financial industry is an important part of the decentralized revolution and still has a lot of room for development.
NFT: NFT has great potential for the future and will not be limited to the hype of small pictures.
Others: AI, social networking, Ethereum ecology, decentralization concept, etc.
As the market progresses, you can pay attention to the investment direction of leading investment institutions, such as Binance and A16Z. Signals of the bull market peaking: The main force releases positive news, the media outside the circle rush to report, celebrities collectively see bullish, retail newcomers enter the market to chase high prices, and the main force takes the opportunity to sell a large amount of goods to cash out. Because the increase in Bitcoin is too high and the bubble is too big, new funds cannot maintain the bubble, the volume is insufficient, Bitcoin falls, and the bull market ends
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