Explore

Crypto Market Cycles & Indicators

Crypto Market Cycles & Indicators

Ever wonder why prices go up, then crash, then rise again?

Let’s break down how the crypto market moves in cycles — and how to spot them

What is a Market Cycle?

A market cycle is the pattern of ups and downs that prices follow over time.

In crypto, it usually goes like this:

Hope → Hype → Crash → Recovery → Repeat

Yes, it’s emotional

The 4 Phases of a Crypto Market Cycle

  1. Accumulation (smart money buys quietly)
  2. Bull Market (prices go up, hype grows)
  3. Distribution (whales sell, price slows)
  4. Bear Market (prices drop, panic hits)

Let’s break them down...

1) Accumulation Phase

  • Prices are low
  • People are scared or bored
  • Smart investors are buying quietly
  • Media isn’t talking much about crypto

Example: Bitcoin in late 2018 or early 2023

👉 This is usually the best time to buy (but it’s hard because confidence is low)

2) Bull Market Phase

  • Prices start rising
  • Excitement builds
  • Media and influencers hype it up
  • Everyone starts buying

Example: Bitcoin in 2021, ETH hitting new highs

🚨 This is when people FOMO (Fear Of Missing Out)

3) Distribution Phase

  • Prices start to slow down
  • Whales take profits
  • Market looks strong, but momentum fades
  • Smart investors sell to new buyers

It still feels bullish… until it suddenly doesn’t

4) Bear Market Phase

  • Prices fall hard
  • Panic and fear take over
  • People sell at a loss
  • Media calls crypto “dead” again

Example: Crypto winter 2022

But this phase sets up the next cycle 👀

Key Indicators to Watch

To spot where we are in the cycle, watch these:

  • Bitcoin dominance: Is BTC leading the market?
  • Trading volume: High in hype, low in fear
  • Fear & Greed Index: Sentiment tool (0 = fear, 100 = greed)
  • RSI (Relative Strength Index): Measures if assets are overbought/oversold

This visual shows the 4 market phases and key indicators to help you identify where we are in the cycle.

Pro Tip: Zoom Out

When in doubt, zoom out on the chart.

You’ll see crypto always moves in waves, but the trend has been up long-term.

Markets are emotional short term, but logical over years.

Final Thoughts

✅ Market cycles are normal
✅ Don’t chase hype or panic-sell dips
✅ Learn to spot the cycle phase
✅ Patience = profits in crypto

If you understand the cycle, you’re already ahead of 90% of the crowd.

Read next

Comments ()