The crypto market is beginning to show signs of revival. Ethereum (ETH) has broken past the US$ 2,500 mark, Solana (SOL) reached US$ 180, and the meme coin PEPE has doubled in value within a month. However, a well-known crypto analyst using the handle ‘Virtual Bacon’ on X cautions that now is not the right time to recklessly invest in low-cap altcoins.

In a detailed thread, he outlined the early phase of the bull market and what he believes to be the most effective investment strategy for the current conditions.

Altseason Always Follows a Consistent Pattern

According to VirtualBacon, every altseason follows a nearly identical sequence:

1. Bitcoin leads the rally

2. Ethereum and Solana follow

3. Capital then flows into large-cap altcoins, followed by mid-cap tokens, and finally meme coins.

“We are currently in the second phase, where major altcoins are beginning to rise. If ETH and SOL don’t maintain their leadership, the rest of the altcoin market will struggle,” he explained.

Due to this, he has exited most of his positions in small-cap altcoins (those under US$ 300 million in market cap) and shifted his portfolio into Bitcoin, Ethereum, Solana, and major altcoins like TAO, SUPER, and PEPE.

“Since March, this strategy has paid off. Some of my tokens are up 40%, while others have remained flat,” he said.

Global Economic Support Factors

One reason for his renewed optimism is the recent 90-day trade truce agreement between the United States and China. He sees this not just as news, but as a development that reduces market uncertainty and could fuel liquidity into financial markets, including crypto.

More significantly, the Global Liquidity Index has shown a notable increase for the first time since 2021—an early indicator that funds may be flowing back into risk assets like cryptocurrencies.

However, VirtualBacon warns that the U.S. Federal Reserve has not yet halted its liquidity-tightening (quantitative tightening) policy. Without a formal pause, he views the current price rally as merely a “relief rally,” not a full-fledged bull market.

“Stick with major altcoins at least until Q4 or until the Fed officially stops tightening the market,” he advised.

Key Price Levels to Watch

He also shared some price levels investors should monitor closely:

• Bitcoin (BTC): As long as it stays above the 50-week moving average, the bullish trend remains intact.

• Ethereum (ETH): Currently testing a key level at US$ 2,500. It’s promising long-term, but short-term traders may want to wait for a pullback to around US$ 2,100.

• Solana (SOL): Just reached US$ 181. The ideal buy range is between US$ 140 and US$ 150.

“Don’t chase after already pumped prices. It’s better to wait for a dip and enter once a new upward trend starts forming,” he said.

Other Favorite Sectors

Beyond major altcoins, VirtualBacon also highlighted some promising tokens in niche sectors:

• Gaming: SUPER remains his top pick. The team is active, regularly updates the project, and is soon launching rewards for stakers.

• AI: TAO is gaining traction. It now ranks in the global top 30 and is being dubbed the “Bitcoin of AI crypto.”

• Meme Coins: PEPE continues its upward momentum. Meanwhile, PENGU is still consolidating but shows significant potential.

• RWA (Real-World Assets): He holds AXL and is building a position in CHEX, a licensed real-world asset tokenization project based in Singapore.