🚩【Bitcoin Market Cycle Chart】

This chart is a classic illustration of the "Market Cycle," used to describe the rise and fall of asset prices at different stages and the underlying changes in market sentiment. Specifically, it is divided into the following stages:

⚠️1. Accumulation

Characteristics:

Typically occurs after a significant price drop.

Market sentiment is low, but smart investors (such as institutions) begin to enter the market to buy.

Volatility is low, and prices gradually stabilize and start to rebound.

Strategy:

For long-term investors, this is a good opportunity to build positions.

⚠️2. Markup (Uptrend Phase, Bull Market Start)

Characteristics:

Prices begin to rise continuously, forming peaks and higher highs.

Market sentiment gradually turns optimistic, attracting more investors.

Trading volume significantly increases.

Strategy:

Enter the market when key resistance levels are broken and hold to capture the bull market trend.

⚠️3. Distribution

Characteristics:

Prices have experienced significant rises, gradually reaching a peak.

Market sentiment enters an extremely optimistic or even euphoric state.

Smart money (such as institutions) begins to cash out, and retail investors become buyers.

Strategy:

Observe cautiously, gradually reduce positions or exit the market.

⚠️4. Decline (Downtrend Phase, Bear Market)

Characteristics:

Prices begin to fall significantly, forming troughs and lower lows.

Market sentiment shifts from fear to despair, with severely diminished investor confidence.

Trading volume decreases, and sell-offs continue.

Strategy:

Avoid excessive operations and wait for market stabilization before considering new positions.

Annotations in the image: We are in the "Markup" phase

Your annotation indicates that the market is currently in the bull market uptrend phase (Markup), which is the most active period for the market, with large amounts of funds and new investors flooding in, driving prices up significantly.

Advice: At this stage, investors can hold positions using a trend-following strategy, but should also pay attention to market top signals to avoid being overly greedy.

✅Summary

This chart describes the cyclical fluctuations of market prices while reminding investors to adjust strategies based on different stages, making it an important tool in investment analysis. If you need a detailed analysis or interpretation in conjunction with the current market situation, please feel free to let me know!