🎢 The Infinite Cycle of Cryptos: Bull Run, Dump
Those who follow the crypto market have already noticed a classic pattern that repeats itself: the bullish cycle (Bull Run), followed by profit-taking, a sharp decline (Dump), and then accumulation.
1️⃣ Bull Run — The price skyrockets, news becomes headlines, and the fear of missing out (FOMO) dominates. Many enter at the peak, driven by collective euphoria.
2️⃣ Profit-Taking — Experienced investors, such as large funds and "sharks", start to sell discreetly to secure gains without creating panic in the market.
3️⃣ Dump — As profits are realized, the price plummets and many panic. Stop-losses trigger, causing cascading liquidations. It is the moment when most "sell at a loss", thinking they have lost everything.
4️⃣ Accumulation — After the drop, the market stabilizes, and more strategic investors begin to accumulate, buying assets at low prices. Retail investors generally miss this opportunity, distracted by fear and doubt.
🐟 Sardines vs. 🦈 Sharks
Sardines are the investors who buy in euphoria and sell in despair. Sharks act calmly, accumulating in fear and selling in a rally. Understanding this behavior is essential to avoid being caught by the emotional cycle of the market.
💡 How to avoid being a sardine?
Study the market cycles; they are historical and repeat.
Develop a clear strategy and follow the long term, without being swayed by momentary hype.
Use risk management tools to protect your capital.
Understand that volatility is part of the crypto market, and patience is essential.
🔄 This cycle will continue to exist — the key is how you will act within it.
