The crypto market moves in cycles, up and down. If you don’t know which phase you’re in, you’ll buy high and sell low. That’s what most people do.
A bull market is a long period of rising prices. Bitcoin makes higher highs and higher lows. Money flows into the market daily. News is positive. People talk about profits. In 2017 and 2021, Bitcoin rose from a few thousand dollars to tens of thousands. Many altcoins grew 10x or 50x. Drops were short and quickly bought. Most people enter too late, buying after big gains and thinking the bull market will never end. They ignore risk. To avoid this, enter gradually, sell part of your holdings on gains, lock in profits, and don’t put everything in one coin.
A bear market is a long period of falling prices. Bitcoin makes lower highs and lower lows. Money exits the market. News turns negative. Fear dominates. In 2018 and 2022, Bitcoin lost over 75% of its value. Many altcoins fell over 90%. Trading volumes dropped. Public interest disappeared. Some people sell in panic. Others buy every dip thinking it’s the last. Many stay stuck for years. The smart approach is to keep most funds in cash, buy rarely and strategically, focus on known projects, and avoid forcing trades.
The crypto market moves in cycles, not randomly. A typical cycle has four phases:
Accumulation: Smart investors quietly buy while prices are low. Most people ignore the market during this phase. This is the best time to enter without competition.
Bull phase: Prices rise steadily, news is positive, and everyone talks about profits. Early buyers see the biggest gains.
Distribution: Near the peak, early investors start taking profits. Prices may fluctuate sharply. Beginners often misread this as continued bull momentum.
Bear phase: Prices fall, fear dominates, and many sell in panic. It clears weak hands from the market, preparing the ground for the next accumulation.
A bull market doesn’t start when everyone talks about crypto. It starts when the market is quiet. Prices stabilize. Bitcoin stops making new lows. Volume rises slowly. A bear market doesn’t end after a small rise. It ends when the trend clearly changes. Highs and lows start moving higher.
The market doesn’t trick you. Emotions do. If you know which phase you’re in, you have a clear advantage.