The typical Bitcoin cycle is characterized by the following stages:

End of Bull Run (Finale) -> Start of Bear Market -> Bottom -> Recovery Market -> Correction during Recovery -> Start of Bull Market

This cycle tends to follow a consistent pattern.

In this cycle, the prominent FOMO groups are those buying at the [End of Bull Run (Finale)] and during the [Recovery Market]. These groups often enter the market late, usually after witnessing significant price rises.

When categorized by UTXO AGE, these groups currently correspond to the 2-3 years and 1-3 months ranges.

Before the onset of a major bull market, the average acquisition price (Realized Price) of the 2-3 years and 1-3 months groups undergoes a 'smoothing process' involving repeated dead crosses and golden crosses.

Essentially, Bitcoin's price tends to stabilize near the price levels of these two groups, undergoing a 'reaccumulation period' before starting to rise again. This phase is referred to as 'Correction during Recovery.'

This period is commonly known as the time when the "fools' coins" are bought up by the smarter investors. Savvy investors, having previously sold to the FOMO group, buy back from them at lower prices.

Written by CoinLupin