"Cryptocurrency Cycle", i.e., the period between the rise of the currency (bull run) and then its correction or decline (bear market).
This cycle often goes through repeated phases, and can be summarized as follows:
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1. Accumulation Phase
Prices are low and stable.
Whales and smart investors buy quietly.
Ordinary people tend to be scared or uninterested.
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2. Early Bull Phase
The currency starts to rise gradually.
Some positive news emerges.
Experienced investors enter.
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3. Parabolic Bull Run
Prices rise sharply.
The masses enter and greed takes over.
The media exaggerates the gains.
This is often the shortest phase of the cycle, but the most profitable.
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4. Blow-off Top & Crash
The price reaches an illogical peak.
Strong correction begins after negative news or profit-taking.
People sell in fear.
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5. Bear Market
Prices decline continuously.
Small investors exit at a loss.
People lose hope and think the market will never return.
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6. Then the cycle starts again...
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Duration of the cycle?
Often associated with Bitcoin's halving, which occurs approximately every 4 years.
Usually:
Strong rises occur after one year from the Halving.
Then the market enters a long correction (from one to two years).
Then the accumulation phase returns.
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