Sep 07, · The bitcoin market cycle would be like fiat currencies. Stages of a Market Cycle. Disbelief – Disbelief is the first stage after the total decline of a market. With no emotions left, traders don't imagine the market can bounce back. Most are designed to fate after losing investments. Dec 12, · Bitcoin’s Current Market Cycle Is “Average” For what will soon be a year, Bitcoin has been going through an extended hangover from the exponential rally of December which saw it make new All Time Highs (ATH) at $20, Jan 09, · Where Is Bitcoin In The Current Market Cycle, According to Famous Cheat Sheet All financial markets are cyclical, and it’s no different for Bitcoin and other crypto assets. After periods of extreme or sustained growth, often comes a retracement of a similar magnitude.
Btc market cycleMarket Cycles in Cryptocurrency - CryptoCurrency Facts
Anyway, that is the basic concept. Actually making good investment choices based on all this information is way harder than knowing it all conceptually, because you are human, and thus you will be exposed to pressure to buy high and sell low.
All those will leave you with the same answer as to what you should do: Accumulate when everyone is sad and fearful, distribute sell when everyone is happy and greedy, refrain from using credit speculate at the top unless you are shorting the market , and then be ready to do some summersaults when a fake out occurs and everything suddenly goes the other way.
TIP : Unless you have a magic ball or are very confident in your TA, I strongly suggest you average and scale in and out of positions. This will help you to avoid mistiming the market. Someone always has to be the one to buy high and sell low, try not to do both of those… and if you do, try not too repeat that mistake too frequently! TIP : Market cycles can end, for example if a crypto goes to the graveyard. Remember — took a long time to play out it was a slow bleed, with a lot of fear; AKA a long accumulation period in which everyone who accumulated and held their investment are now essentially rich… and who do you think accumulated?
The answer is, crazy people and people who understand market cycles. The crypto consensus price chart — If this is anything like the. It is the next part of the chart we want to keep our eye on.
Hello fractals. Cryptocurrency loves patterns. One pattern to note is the January correction. The — Bitcoin Bubble popping. By the same token, the current Bitcoin market cycle also experienced a pretty standard rise comparative to its previous market cycles , despite having made impressive mind-blowing exponential gains. People tend to use historical market data to deduce trends and extrapolate that data into potential future trends.
Though historical price action can be useful in predicting future trend reversals, no market cycle will ever be a copy-paste version of itself. Every market cycle is and will be different. Every uptrend will yield different gains; every correction will vary in its severity. This would constitute an additional 1. For Bitcoin to match its deepest retrace to date i. What never changes are the fundamental shifts in human psychology that underpin market cycles.
Humans are predictably irrational. At some point, the bargain hunters are going to start stepping into the cryptocurrency market by buying Bitcoin and other alternative coins i. Author of the Rekt Capital Newsletter.