Why Many Investors Struggle in the Crypto Market*
The crypto world is like a rollercoaster - thrilling but unpredictable. Despite the well-known 4-year bull cycle, many investors still find themselves on the losing end. Let's break down the reasons behind these losses:
*1. Understanding the Crypto Bull Cycle*
Each cycle typically spans about four years:
- *Bear Market (3 years)*: Prolonged periods of declining prices and stagnation.
- *Bull Market (1 year)*: A rapid escalation in prices, leading to new highs.
Looking at past cycles:
- *2014-2018*: 177 weeks of decline followed by a 34-week surge.
- *2018-2022*: 157 weeks of downturn, then a 47-week rise.
- *2022-2026*: Currently, we're still navigating the bear market, with previous highs yet to be surpassed.
*2. Emotional Dynamics in Market Cycles*
The path through a bull cycle is an emotional journey marked by:
- *Red Phase*: After peaking at new highs, prices start to drop, sparking emotions like complacency, anxiety, denial, panic, and capitulation.
- *Yellow Phase*: During the accumulation stage, investors grapple with anger, depression, disbelief, and hope as they encounter lower prices.
- *Green Phase*: As prices break through previous highs, the mood shifts to optimism, belief, thrill, and euphoria.
Navigating these emotional waves and staying informed is crucial to protecting your investments. Prepare yourself - the crypto journey is far from over!
