If we look at the crypto market according to the 4-year cycle, we may have officially entered a downtrend. However, instead of leaving during this downtrend, I personally think this is the time when everyone needs to stay.
Because downtrends are not a phase for quick money-making, but the most important phase to build positions for the next cycle. Most people only pay attention to the market when prices are rising sharply, good news is plentiful, and excitement spreads. But at that time, the advantage is already gone.
Successful investors in crypto always closely monitor the market even during downtrends, because this is when Market Makers and large funds quietly accumulate assets, taking advantage of the majority's fear to buy assets at the lowest price points.
The best buying point in the market never comes with a feeling of comfort. In a downtrend, bad news appears continuously, prices drop, causing most investors to doubt the value of the asset, even leaving the market.
That moment is actually the time of lowest risk for those with a plan, as prices have already reflected most of the fear. Close monitoring helps distinguish between a drop caused by short-term panic and a genuine weakening of the trend, thus allowing for the selection of advantageous long-term buying zones.
To be able to hold profits for the next cycle, positions must inevitably be built from downtrends. No one can buy at the peak and then expect to hold large profits; only those who patiently accumulate during the hated market phase have the right to sit still when the uptrend returns. At that point, they do not need to trade continuously, do not need to FOMO, just need to maintain discipline and let time do its part.
Downtrend is also the harshest test of mindset. It eliminates those without a plan, poor capital management, and those easily swayed by emotions. Those who survive are those who understand market structure, comprehend cycles, and focus on the question: have I accumulated a good position yet, instead of impatiently asking when prices will rise.
Ultimately, the difference between losers and the wealthy after each cycle does not lie in who is better at entering trades, but in the timing of when they dare to act. New investors buy when the trend is clear, when good news is rampant. Those who understand the cycle buy when the market is steeped in fear.
Downtrend is where money is made, while uptrend is just where profits are visible. Protecting capital is not an option, it's a duty – and downtrend is the phase that best helps fulfill that duty.
