Historically, the crypto bull market cycle repeats itself every 4 years. We all know it. But many of us are still losing money. Let's find out why. 1. Anatomy of a Crypto Bull Market Cycle Generally speaking, a bull market cycle lasts about 4 years. During this whole 4 years, the first 3 years are bear markets, while the last one is a bull market. The first two cycles showed these exact times:
📅2014-2018 Bear Market: 177 weeks Bull Market: 34 weeks Total: 211 weeks (4 years and 2 weeks)
📅2018-2022 Bear Market: 157 weeks Bull Market: 47 weeks Total: 204 weeks (3 years and 11 months)
📅2022-2026 As of today, ATH has not been broken and held. So technically speaking, we are still in a bear market.
2. The psychology of market cycles Bull market cycles are like a roller coaster of emotions. These emotions represent a phase. Complacency, anxiety, denial, panic and capitulation. These emotions can be felt after a new ATH is reached and the price continues to fall rapidly (of course you don’t know it at that time).
In the chart, these are represented by the Red phase. Anger, Frustration, Doubt and Hope. These emotions can be felt during the accumulation period. Represented by the Yellow phase. Optimism, Faith, Excitement and Euphoria.
These emotions can be felt after the previous high is breached and the price increases exponentially. This is the green phase.
3. Combine the above 2 factors. By adding “Anatomy of a Bull Cycle” and “Market Psychology”, you can understand why people still lose money on cryptocurrencies despite knowing about the bull cycle.
🟥Red PhaseThe price just hit a new high. But you don’t know that the price will start to fall. Complacency. You think it’s just a pullback. Then you get anxious because the price keeps falling. Then the next day it falls again. You still refuse to accept reality. You don’t sell your crypto. Then BAM! You start panicking because you’re down 90%. Then you decide to get out of the market. Capitulation.
🟨Yellow Phase Prices go sideways. You are angry because you lost a lot of money. Then you start to get depressed. The market starts to recover, but you are not moving on yet. Prices start to rise, but you don’t believe it anymore. Doubt. Then another huge rally comes and you suddenly become hopeful.
🟩Green Phase Price breaks through the previous high. You realize this rally is real. After a while, there is another rally and you believe it again. Then you enter the market. Price goes up. You are very excited. Price goes up. You feel ecstatic. You feel like a genius. Then the cycle starts again and you don’t sell your crypto at the right time. This is why people lose a lot of money in crypto.
