Market Cycle
Succession of emotional and technical phases in an asset’s evolution.
Beginner-friendly explanation
A market cycle is like a loop in price movement: it goes up, then down, then up again. This happens often in crypto. At first, few buy. Then excitement grows, price rises, followed by fear, and price falls. It’s a natural market rhythm. Example: Bitcoin goes from €10,000 to €60,000, then back to €30,000. That’s a typical cycle.
Intermediate-level insight
A market cycle usually has four phases: accumulation, markup (bull market), distribution, and markdown (bear market). Each phase reflects a dominant sentiment (fear, hope, euphoria, panic). Identifying these phases helps improve market timing. Example: After a long bear market, months of low-volume accumulation may signal a coming rally.
Advanced perspective
Market cycles can align with macroeconomic, psychological, and structural patterns. Cycle analysis includes tools like: Elliott waves, Wyckoff cycles, or halving phases in crypto. Some quantitative models try to detect cycle shifts via volatility, volume, or cross-asset correlations. Example: An analyst spots a Wyckoff-style distribution on ETH, combined with declining momentum — anticipating a cyclical correction.
Market Cycles & Structures
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