The crypto market is at the “last shakeout” phase before the onset of a bull run. Today is the period of market correction where weaker hands are forced to sell, clearing the path for the real bull run to attacks.
In 2013
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saw its value jolted from around $13 at the start of the year to over $1,100 by November. In the 2017 Bull Run, the market experienced one of its most memorable bull run, with Bitcoin reaching nearly $20,000. This was started by a shakeout after the previous peak, setting the stage for the 2017 rally.
The Last Shakeout on Psychological, Market Sentiment, and Proofing Everyone Wrong with Bull Run
At the end of 2020 and the beginning of 2021, the crypto market was at a bearish and depressing point. After Bitcoin soared to new heights, many declared the bull run was over, and some even said that an “altseason” would never come.
By December 2020, Bitcoin hit its then-all-time high of around $29,000. Following this, a sharp correction led many to believe the bull run had peaked, with Bitcoin dropping to about $20,000 in January 2021. Crypto Twitter wanna-be analysts speculated about the end of the rally, missing the forest for the trees, while Bitcoin later pumped to $64,000 by April 2021.
The market was dominated by FUDs (Fear, Uncertainty, Doubt), with many influencers proclaiming the bull market had exhausted itself. A narrative fueled by the typical crypto cycle of boom and bust. Most of these people overlooked the global economic conditions, including massive liquidity injections by retailers.
Never bow down to institutions playing with your feelings.
(source)
As Bitcoin corrected, skepticism about altcoins grew. The narrative was that Bitcoin would absorb all the investment, leaving altcoins in the dust. However, history proved otherwise. Ethereum (ETH), often considered the gateway to altseason, saw a meteoric rise from roughly $600 at the start of 2021 to over $4,000 by May.
After each major correction in 2020,
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bounced back stronger. Ethereum demonstrated its strength with life-changing rallies following the shakeouts in early 2021. It tends to follow Bitcoin but often with a lag. This lag can result in more gains for Ethereum once it starts its run.
After every correction, Ethereum has historically not just recovered but often exceeded its previous all-time highs.
Buy the fear, sell the greed
— Davinci Jeremie (@Davincij15) January 9, 2025
The rise in meme coins i.e. Dogecoin and the NFT boom underscored the altseason’s arrival. Tokens like
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,
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, and even newer projects gained traction, with some seeing 10x to 100x pumps. Those who sold on the assumption that the bull run had ended or that altcoins wouldn’t have their moment missed out.
Certainly, you don’t wanna be with these investors.
The Great Rotation pic.twitter.com/LAhnndOVEN
— Bold (@boldleonidas) February 2, 2025
Buyers Will Win, Sellers Will Cry, and Sideliners Will be Left Behind
As of today, February 3, 2025, the market experienced a big crash, with Bitcoin dipping below key support levels and ETH dropping by -20%. This event aligns with what Michael van de Poppe has described as a “temporary shakeout.”
The Fear & Greed Index, which measures investor sentiment, has shifted towards fear. The market might be due for a reversal as greed replaces fear in anticipation of a bull run.
(source)
Discussions around interest rate cuts by the Federal Reserve could propel the market. Additionally, Donald Trump’s policies on Bitcoin and crypto in general might catalyze a crypto bull-run cycle. Although Bitcoin’s dominance has been high, historical data indicates that altcoins often follow with their rallies after Bitcoin stabilizes post-correction.
If you can’t hold, you won’t be rich.
— CZ
BNB (@cz_binance) February 10, 2021
Obviously, a shakeout has preceded every bull run. Buying during these times has resulted in huge returns once the market recovers. Today’s dip has led to widespread panic selling, but it’s this fear that creates buying opportunities.
Low-cap utility tokens offer a chance to diversify a crypto portfolio. As the bull run ignites, these tokens will catch up and outperform larger caps due to their undervalued status.
Today might very well be the last shakeout before the market shifts into high gear for a genuine bull run. Historical patterns and current market indicators say that this major dip is a moment for accumulation. For those looking to invest, consider not only the giants like Bitcoin but also the undervalued low-cap utility tokens, which could see their moment in the sun as the market dynamics evolve. Don’t fade the opportunity anon.
EXPLORE: 10 Coins with High Returns: Crypto Forecast 2025
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The post The Last Shakeout Before the Real Bull Run: Studying Crypto Market Dynamics appeared first on 99Bitcoins.