The cycle is a global movement of the entire cryptocurrency market, which is divided into stages. The cycle at the current market capitalization is always tied to the main cryptocurrency - Bitcoin (BTC) and everyone dances from it.
All new investors or traders, when they get to the market, make the same fatal mistake - they think that there are only two stages in the cycle. Let's figure it out.👇
There are four global stages that ALWAYS follow one another:
bear - accumulation - bull - distribution. It has always been and always will be!
In this case, we are not talking about a local rise or fall during the news stage (a common story), but about a global one, which occurs every four years and is tied to halving, i.e. a halving of the reward for mining a block in Bitcoin mining.
All these infocygans on channels, YouTube, TV and other places where plankton gathers say the same thing every year: "This cycle is not like the others", "This time everything is different", "BTC will not grow, which means the market will not either", "There will be no Alt-season", etc., etc.
Every year they drive fresh hamsters into the markets (like last year on TON), brainwash them, and sell them all sorts of garbage like memes at the market highs.
And so the stages themselves:
Bear market - usually lasts from one to two years. At this stage, the markets are painted red (by the way, I advise you to change it in the settings to any other, try it), a downward long-term trend of up to -90% of historical maximums for many tokens, the news background is pressing, there is no motivation to buy, the hamsters were stuffed with tokens on the bull market so much that suicides begin, and there are also a bunch of scammers and hackers trying to squeeze out the last.
Accumulation - Usually lasts from eight to 15 months. This stage does not manifest itself in any way, can maintain a downward trend, smoothly flowing into a sideways trend. Funds are buying up for a long time... Positive news begins to appear, but not too often, so as not to inspire optimism in the hamsters. Periodically, there is a short-term growth with a sharp fall in order to drive in newly arrived hamsters at local highs, and then take away the tokens they bought from them cheaper at the drawdowns.
The bullish stage is when BTC starts to grow sharply to its previous maximums (a month or two). Usually, alts stand still and do not show themselves in any way, the news background tries to suggest that this is a scam and the bear market is not over yet, and then the hamsters start buying BTC when it is at local highs. Then there is a sharp drop in the entire market, selling by funds and institutions across the entire market - 40-60%, and alts generally break through their bottom. Panic, hamsters try to save their shit-stained panties, selling even at a loss their BTC. (We are here now, by the way). Then begins a rollback growth of the entire market by hundreds, and for many tokens by thousands of percent throughout the year with periodic local drawdowns, the charts fly into the sky, everyone is optimistic.
Distribution is the stage when the entire market is at global highs. Joy and euphoria in the news background (lasts from two to four months). The market very slowly begins to move down, because large players begin to sell their tokens to hamsters. Hamsters with shit-stained panties begin to enter the market in the hope of recouping losses on the fact that the growth is not over yet, because their blogger talks about exactly this.
And then everything starts all over again... blood, screams, rock&roll...
