I've outlined a simplified yet insightful version of how crypto market cycles often play out, showcasing the emotional and behavioral patterns of market participants. Here's a summary of the bullrun cycle:
1. Bitcoin (BTC) Leads the Market
Pumps first, sets the tone for the market.
Consolidates as profits rotate to other assets.
2. Ethereum (ETH) Follows
Gains momentum as attention shifts from BTC.
Consolidates, allowing liquidity to move further.
3. Altcoins Rise
Large caps, mid-caps, and eventually smaller altcoins pump.
Each tier consolidates, leading to speculative rotations.
4. Microcaps Shine (Speculative Bubble)
As major players stabilize or retrace, highly speculative coins rally.
5. Market Turns Boring (Sideways Action)
Momentum slows, interest wanes.
Seasoned investors start paying attention while many retail traders leave.
6. Meme Coins and Hype
Speculative assets pump as a last hurrah, often drawing in retail traders.
Leads to exaggerated volatility.
7. Market Bleeds
A deep correction or "final dump" occurs.
Sentiment turns negative, and many proclaim crypto is dead.
8. Cycle Restarts
Accumulation begins, smart money enters.
Signals the early phase of the next market cycle.
This pattern reflects the cyclical nature of speculative markets, driven by liquidity, sentiment, and human psychology. While this roadmap is helpful, the timing of each phase is unpredictable, and external factors like regulation, macroeconomic trends, or technological developments can alter it.
Key Takeaway: Stay patient and watch for opportunity during periods of fear and boredom, as that's often where the next cycle starts.
