Everything in the world is cyclical, and cryptocurrencies are no exception. If you understand this pattern, you can increase your profits and avoid many losses.

In the case of Bitcoin, every 4 years an event called halving occurs, which halves the rewards for mining and marks the beginning of a new cycle. This cycle can be divided into four stages:

1. Bear market: After reaching a peak, prices fall drastically for months. It is a phase of fear and pessimism, where many projects disappear or lose value.

2. Accumulation: After the downturn, prices stabilize in a low range. It is a quiet period with little public interest, but experienced investors take the opportunity to buy assets at a good price.

3. Bull market: Over time, prices begin to rise, first gradually and then explosively, especially after the halving. This phase usually brings new all-time highs and attracts a lot of media attention.

4. Distribution: At the highest point, the market enters euphoria. This is when many buy driven by the fear of missing out, but more experienced investors start selling before prices drop again.

Understanding these stages is key to knowing when to buy, sell, or wait, and thus make better use of the opportunities that the market offers.