3 Adjustment Phases in a Bull Run Market: Understand Clearly to Avoid Buying at the Top

Many newbies entering the crypto market often have an illusion: “A bullish market means it only goes up.” But in reality, a bull run cycle is never a straight upward path — it is always interspersed with strong corrections, with different risks and opportunities at each stage. If you understand this nature correctly, you will no longer be “swept away by the waves” but will know how to position yourself correctly to benefit from the market.

1. The initial phase of the bull run: Initial correction – “Blood filtering” the crypto market This is the time after the price has had a significant bullish movement, then suddenly corrected deeply and prolonged. A classic example is Ethereum dropping from $4,800 to $3,400, equivalent to nearly 30%, then going sideways for about 20 days. At this time, the general sentiment is fear and doubt: Many people rush to cut losses because they fear the crypto market will crash for real. Others do not dare to enter because they are afraid that “buying means it's at the peak.” But in reality, this is the “distribution” phase of the bull cycle — where the “weak hands” are pushed out of the market, while smart money begins to accumulate in silence. 👉 Strategy for this phase: Observing the trading volume gradually decreasing while the price maintains a strong support zone → the shakeout signal is complete. Focus on projects with a solid foundation, high liquidity, and start accumulating gradually in each phase instead of going all-in.
2. Mid-stage: Adjustment between cycles – “Golden opportunity for the sober” When the bull run becomes clearer, the market will experience mid-term corrections: Short time ( a few days to 1 week ). The decline is usually 15% - 20%, but the recovery is very quick. Recently, SOL dropped from $220 to $180, then just after 5 days it increased again and surpassed the new peak. During this period, you will see the familiar phrase flooding the internet: “Adjustments are opportunities to buy in.” It sounds right, but this is also a time that can easily lead newbie investors to become overly excited. They see everyone making money, so they ignore discipline and capital management, entering trades too early or using high leverage — and just a wrong timing can wipe out all previous gains. 👉 Strategy for this phase: Set clear stop-loss levels, as accelerated volatility also means higher risk. Prioritize taking partial profits when prices rise sharply instead of holding on forever “because you believe in the trend.” Monitor the funding rate, open interest (OI), and market sentiment: if everyone is “too optimistic,” start to be cautious.
3. Final stage: Late adjustment – “The trap of habitual thinking” This is the most important turning point of the bull run. On the surface, the price drop looks very similar to the previous two corrections — but this time, the market did not recover, instead falling into a long-term (bear market). The reason is the “winning addiction” mentality: After 2-3 successful bottom buys, most investors believe that “this time will be the same,” and they buy heavily at the false bottom. But instead of recovering, the price continues to drop, causing them to be stuck with long-term capital. 👉 Strategy for this phase: Don't guess the bottom. Let the market confirm the trend before entering a trade. Observe the declining volume, dwindling liquidity, and capital flowing out of exchanges; these are signals that the bull run has ended. Holding stablecoins and patiently waiting for new opportunities is always a better choice than trying to “catch a falling knife.”
4. Signs to identify the current phase of the crypto market Currently, the crypto market is no longer in a panic like in the early stages, nor is there absolute excitement like in the middle of the cycle — instead, there is hesitation and fluctuation. The trading volume shows signs of decreasing, institutional money flow is slowing down, while the volatility range is becoming increasingly unusual. This indicates that the crypto market is entering the crossover zone between the middle and the end of the cycle, where risks increase significantly.
5. A few survival principles for newbies: Observe the turnover rate (turnover rate): If the volume drops significantly but the price does not increase, it is a sign of cash flow exhaustion. Always keep 20–30% USDT in reserve: Never go all-in, no matter how good the signal is. Set clear goals and stop points: Discipline is the only barrier that protects you from greed. Monitor crowd psychology: When everyone is convinced that it will “certainly increase”, that is exactly the time to think otherwise. Conclusion A real bull run is a “test of patience” rather than an easy party. Smart people are not those who are always right — but those who know what stage of the cycle they are in and act accordingly. The market will always have waves, but only those who know how to swim at the right time will reach the shore.