Cryptocurrency Bottom Fishing 8 Stages Full Analysis: Which Step Are We Currently At?
1. First Stage: Confidence Booming Period
The atmosphere in the group is enthusiastic, everyone is full of confidence, painting visions for each other, "CX" (promotion), actively pushing every day, all believe they are "doing big things".
2. Second Stage: Confidence Weakening Period
The cryptocurrency price enters a consolidation phase, the increase stagnates, and the confidence in the group has somewhat declined, but some still insist on pushing, not completely giving up hope.
3. Third Stage: Early Bottom Fishing Period
The cryptocurrency price starts to decline, most people believe it’s a "buying opportunity", and they increase their positions, actively bottom fishing.
4. Fourth Stage: Bottom Fishing Exhaustion Period
The cryptocurrency price continues to drop, the initial bottom fishing funds are exhausted, and everyone can’t push anymore, speech in the group decreases, and the enthusiasm for pushing significantly cools down.
5. Fifth Stage: Negative Explosion Period
Negative emotions spread in the group, accusations and insults towards the project team begin to appear, and dissatisfaction is released in a concentrated manner.
6. Sixth Stage: No One Cares Period
There is almost zero speech in the group, the curses disappear—most people have cut their losses and left the market, completely uninterested in project dynamics.
7. Seventh Stage: Belief Shattered Period
The cryptocurrency price continues to fluctuate at a low level, eroding the last holding beliefs of retail investors, and some are forced to cut losses.
8. Eighth Stage: Recovery Takeoff Period
The market starts to recover, the operators test the waters (pulling up sharply) to observe the retail investors' reactions; after repeated testing, retail investors dare not chase the rise, and the operators initiate a real upward trend.
2. Key Question: Which Stage Are We Currently In?
It is necessary to combine the specific cryptocurrency's price trend (whether it is in a low-level consolidation/continuous decline), community activity (speech volume/emotion), and retail investor behavior (whether they are still bottom fishing/have left the market) to make a comprehensive judgment:
1. If there are still curses in the community, and some are observing, it is likely in the 5th-6th stage;
2. If it is in a low-level consolidation and the community is silent, it may be in the 7th stage;
3. If there is a test of the market with an upward pull, and retail investors dare not chase, it may have entered the early stage of the 8th stage.
