UNDERSTANDING THE CRYPTO MARKET CYCLE
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It is clear to me that the crypto market is highly unpredictable during the bear market.
Due to this a lot of traders has been asking me when will the bear crypto market cycle be over?
Well let's talk about it.
I literally always said to those asking me I don't know because so far so good the market has actually broken the area I labeled my turning point.
I also told my students to take a break from trading crypto, most especially alts.
As I speak to you most alts has lossed more than 90%, BTC and Ethereum has lossed more than 60% from ATH.
Well, I have asked my self a lot of question during this bear season.
But the major one is "When will the crypto bear market cycle be over?"
I have taken my time to draft out the important things we need to know about the bear market cycle. This is specifically for crypto investors.
This will help you know the levels of accumulation and distribution and also help you know good area of turning point.
But first of all let's take a look at the overall psychology of the crypto market cycle.
Above is what a market cycle looks like on a chart. With Bitcoin specifically, using the terms that describe the phases of a market cycle from the above chart (not official terms, but useful terms) it might look like this:
1. Smart money, institutional investors, early adopters, etc accumulate Bitcoin low (they accumulate during a lower period that looks like anger and depression to those who held from the last peak).
2. Bitcoin goes up (it is wise to HODL through disbelief and hope – buy the dip at support).
3. People get excited and the price goes up even quicker as many FOMO buy (those who bought lower start to distribute some as they mark up the price; it is wise to HODL and/or SELL through belief, thrill, and finally euphoria – start closing longs here).
4. Bitcoin is distributed high (this phase consists of the price action near the top all the way until complacency; SELL).
5. Bitcoin goes down (anxiety and denial; SELL if you haven’t, SHORT and play BOUNCES – short the rip at resistance).
6. People get sad and panic (anxiety to panic; SHORT).
Bitcoin goes down even quicker as people panic sell (play BOUNCES – start closing shorts here).
7. Bitcoin bottoms out in a messy pattern that can see a gradual grind down of the rest of the market (anger and depression; this is the accumulation phase; range trade and accumulate).
Most Investors and traders I know don't know what the market cycle denotes, but they have heard about it.
Well this has actually explained the concept.
Thanks guys for reading this down to this level, I will be dropping another tutorial soon. So remember to follow me to get an alert when I drop it
Dont panic, the bull market is yet to come❤️
Please, remember to always follow your trading plan regarding entry, risk and trade management.
Goodluck!
It is clear to me that the crypto market is highly unpredictable during the bear market.
Due to this a lot of traders has been asking me when will the bear crypto market cycle be over?
Well let's talk about it.
I literally always said to those asking me I don't know because so far so good the market has actually broken the area I labeled my turning point.
I also told my students to take a break from trading crypto, most especially alts.
As I speak to you most alts has lossed more than 90%, BTC and Ethereum has lossed more than 60% from ATH.
Well, I have asked my self a lot of question during this bear season.
But the major one is "When will the crypto bear market cycle be over?"
I have taken my time to draft out the important things we need to know about the bear market cycle. This is specifically for crypto investors.
This will help you know the levels of accumulation and distribution and also help you know good area of turning point.
But first of all let's take a look at the overall psychology of the crypto market cycle.
Above is what a market cycle looks like on a chart. With Bitcoin specifically, using the terms that describe the phases of a market cycle from the above chart (not official terms, but useful terms) it might look like this:
1. Smart money, institutional investors, early adopters, etc accumulate Bitcoin low (they accumulate during a lower period that looks like anger and depression to those who held from the last peak).
2. Bitcoin goes up (it is wise to HODL through disbelief and hope – buy the dip at support).
3. People get excited and the price goes up even quicker as many FOMO buy (those who bought lower start to distribute some as they mark up the price; it is wise to HODL and/or SELL through belief, thrill, and finally euphoria – start closing longs here).
4. Bitcoin is distributed high (this phase consists of the price action near the top all the way until complacency; SELL).
5. Bitcoin goes down (anxiety and denial; SELL if you haven’t, SHORT and play BOUNCES – short the rip at resistance).
6. People get sad and panic (anxiety to panic; SHORT).
Bitcoin goes down even quicker as people panic sell (play BOUNCES – start closing shorts here).
7. Bitcoin bottoms out in a messy pattern that can see a gradual grind down of the rest of the market (anger and depression; this is the accumulation phase; range trade and accumulate).
Most Investors and traders I know don't know what the market cycle denotes, but they have heard about it.
Well this has actually explained the concept.
Thanks guys for reading this down to this level, I will be dropping another tutorial soon. So remember to follow me to get an alert when I drop it
Dont panic, the bull market is yet to come❤️
Please, remember to always follow your trading plan regarding entry, risk and trade management.
Goodluck!
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