Market rises with optimism but often dies in madness — this rule is never an exception in the crypto world.

Looking at the candlestick chart in the red, are you questioning your judgment again? Don’t rush to sell off; let me tell you directly: the real big trend is never a straight upward surge, but a series of breakthroughs through repeated shocks. Those drops that scare you into sleepless nights precisely mark the most valuable lows.

But here’s a problem — not all corrections are opportunities. The risks vary greatly across different cycles. Mistiming your moves can, at best, cause you to miss golden entry points, or, at worst, get trapped for months. Having navigated this market for years, today I’ll break down the three key stages of a bull market, so you can seize opportunities without becoming the last bagholder.

**Initial Stage: The "Distribution Period" of Major Volatility**

Remember the market rally at the beginning of the year? Bitcoin surged from 75,000 to 123,000 by July, leading the pack, with Ethereum and other coins barely making a mark.

The corrections in this stage have two obvious features: first, they are fierce — drops of over 30% are common; second, they last quite long — sometimes sideways consolidation for several weeks or even a month before continuing upward. Just like Bitcoin falling from 124,000 to 107,000, with the sound of panic selling everywhere.

What is retail investors’ mindset at this time? Slight gains make them eager to sell, a small dip prompts them to cut positions, and they simply can’t believe the bull market has truly arrived. The reason is simple — the shadow of the previous bear market hasn’t fully lifted, and their psychological defenses are very fragile. Essentially, this correction phase is about clearing out the less committed holders.

My straightforward advice to beginners: this stage tests your mental resilience the most. Don’t let market panic emotions hijack you.