In the cryptocurrency market, short-term price fluctuations often leave novice investors dazzled, making it difficult to grasp the correct operational direction. In fact, success in the cryptocurrency space does not lie in chasing short-term gains but in adhering to a steady investment strategy.
I. Understanding Market Cycles and Investment Rhythm
Cryptocurrency prices are highly volatile, but their market cycles have certain regularities. Generally, bull markets last from 6 months to 1 year, while bear markets last from 1 to 2 years. This means that each bull-bear cycle lasts approximately 3 to 4 years.
To remain undefeated in the market, the simplest and most effective method is to build positions in bear markets and exit in bull markets. According to historical data, Bitcoin has averaged several times increases in each bull market, while experiencing significant pullbacks in bear markets, providing data support for the strategy of 'buying in bear markets and selling in bull markets.' For example, Bitcoin's price fluctuated around $5,000 during the bear market in early 2020, while during the peak of the 2021 bull market, it once broke through $60,000. This kind of drastic rise and fall offers stable profit opportunities for long-term investors.