A cryptocurrency's cycles are phases that repeat over time, driven by investor sentiment.
✅Accumulation Phase: Prices are low after a significant drop. During this phase, the market consolidates and is characterized by cautious optimism among investors who accumulate assets at low prices.
✅Bullish Trend Phase: Prices rise as optimism grows, attracting new investors to the market. Prices increase rapidly, leading to higher trading volumes.
✅Bubble Phase: This stage sees extreme optimism and high levels of speculation. Prices reach unsustainable levels due to euphoria, and new investors flood the market out of FOMO, leading to an overvaluation of assets.
✅Bearish Phase: Prices fall as the bubble bursts. This pullback can result in significant price drops of 60-80% from the all-time high. Panic selling often occurs during this phase.