Why do so many people lose money in crypto despite knowing about the bull run cycle? 🚨
Crypto has this wild cycle every four years – 3 years bear, 1 year bull. We all know it, yet many still lose money. Why? Let’s dive into the roller coaster:
1. The 4-Year Bull Run Cycle
In every 4-year cycle, the first 3 years see a bear market, followed by about 1 year of a bullish spike. Here’s the breakdown:
2014-2018: Bear (177 weeks), Bull (34 weeks)
2018-2022: Bear (157 weeks), Bull (47 weeks)
2022-2026: Still in the bear market until a new all-time high is reached!
2. The Psychology of a Market Cycle
Crypto markets are emotionally intense, leading to the phases of each cycle:
Red Phase (ATH Hit): Complacency leads to Anxiety, Denial, and finally Panic as prices plummet. Many exit here – Surrender.
Yellow Phase (Accumulation): As prices stabilize, anger turns to depression until hope returns, slowly rebuilding faith.
Green Phase (ATH Broken): Optimism turns to Belief, then Thrill, and finally Euphoria. Many buy here, thinking they are on top.
3. Combining the Two Factors
The Anatomy and Psychology of each cycle often leads people to react late, locking in losses or missing profitable exits.
Key Takeaway
Recognize the phases of the cycle – don’t let emotions dictate your trades. Know when to enter, but more importantly, when to exit