TechFlow reports that on March 23, trader Eugene posted an image on his personal channel indicating his view that the market has now entered the fifth stage shown in the chart (long positions losing money, price consolidation, shrinking volume and volatility). During this phase, some stronger altcoins may have already reached their bottom, although it remains uncertain whether the global bottom for most assets has been reached.
Eugene explained that he participates the least during this stage, primarily because volatility remains extremely low regardless of whether prices rise or fall. He would only attempt to select one or two assets he believes are more defensive than typical altcoins—hoping they would perform relatively better if his bearish outlook proves wrong—but that’s all.
The tricky part about the fifth stage is that it could last for any length of time. In my view, considering the lack of structural breakdowns (no company or project failures), I don’t think we’ll remain in this phase as long as in the previous cycle—but this is just speculation. Cryptocurrencies may continue to follow stock market trends for some time.
