When the market is caught in a tug-of-war of "fear and greed," true opportunities often hide in seldom-visited corners.

Recently, community discussions have been heated: "Bitcoin is stuck around $120,000, repeatedly testing support, while small-cap coins are like roller coasters—surging 50% then plunging 60%. Is this a bottom-fishing opportunity or stop-loss? " I've seen this kind of market situation many times. It looks calm on the surface, but in reality, there are turbulent undercurrents.

Anyone who has been in the crypto market knows that such volatile conditions are most likely to wipe out your principal. The key now is not to bet on "long-term stories," but to use market principles to filter out noise and find signals.

When the Fear and Greed Index drops to 22, don’t be swept away by panic. I’ve seen many times that retail investors shout "crash is coming," while institutions are quietly positioning themselves. And those small projects that keep hyping "100x coins"? Most are just pump-and-dump schemes by whales. Newcomers jumping in are only handing themselves over.

**01 Master the logic of capital rotation, don’t jump in at the last moment of the altcoin frenzy**

Market capital flows are not random; they follow a fairly stable rhythm. Understanding this rhythm can help you avoid being the last to jump in.

The rotation effect of crypto assets is very clear: Bitcoin leads, then capital flows into top ecosystem coins like ETH and SOL, then spreads to mid-sized projects, and finally to those fringe small coins with crazy hype. This sequence has remained consistent across multiple bull and bear cycles, with no exceptions.

The current market signals are already clear—after Bitcoin enters a correction, capital begins shifting toward ecosystem coins like SOL. Data speaks volumes: the total value locked (TVL) in the SOL ecosystem has surpassed $165 billion, far exceeding Ethereum’s level at the same time. This is no coincidence; it’s capital voting with its feet.

Those still chasing gains during the collective altcoin frenzy are often the last to buy in. The combination of market psychology and capital flow determines who can exit alive and who will be trapped at high levels.